Gold mining company PT Bumi Resources Minerals (BRMS), part of the Bakrie Group, plans to sign a US$600 million syndicated loan agreement (Rp10.03 trillion) with a consortium of foreign and local banks. 

The funding will support the company’s ongoing business expansion, including the construction of new processing plants and the development of underground mining projects.

BRMS President Director, Agoes Projosasmito, said the financing will mainly come from bank loans, though the company is also exploring other funding options.

“In the near future, BRMS plans to sign a syndicated loan agreement combining foreign and local banks worth US$600 million,” he said during BRMS’s public presentation in Jakarta on Wednesday, November 5, 2025.

Agoes added that BRMS remains open to alternative financing options, including bond issuance for loan refinancing or a rights issue, subject to approval from shareholders and the Financial Services Authority (OJK). Proceeds from any rights issue would be allocated for potential acquisitions expected to positively impact the company’s profit and Earnings before interest, taxes, depreciation, and amortization (EBITDA).

Of the total US$600 million loan, approximately US$300 million will be used to fund the underground mining project, while the remainder will be used for exploration activities in Gorontalo and the construction of a 1,000 tons per day (TPD) ore processing plant in the region. Agoes said the company is eyeing several potential assets for acquisition.

“With this additional funding, BRMS can grow both organically and inorganically. There are still many attractive assets we’re targeting to support business expansion,” he noted.

As an example, Agoes mentioned the Rp350 billion acquisition of Wolfarm Limited in Australia by parent company PT Bumi Resources (BUMI), as part of the Bakrie Group’s broader diversification strategy in the mining sector. He added that BRMS aims to begin loan drawdown before the end of this month to ensure timely progress on plant and underground mine projects.

“If possible, we’ll draw the funds by the end of the month so that construction and production can move faster. Next year, we’re targeting even more aggressive expansion,” he said.

Pushback project

BRMS, through its subsidiary PT Citra Palu Minerals (CPM), is currently executing a pushback project at the River Reef open-pit mine in Poboya, Palu. The process began in the second quarter of 2025 and is expected to finish by the fourth quarter, though operational evaluations indicate the pushback could continue until early 2026.

CPM President Director Damar Kusumanto reported that the average gold grade processed increased to 1.5 grams per ton (g/t) from 1.4 g/t in the previous quarter. “This improvement was achieved by successfully mining and processing higher-grade ore from the lower section of the pit,” Damar cited.

He noted that during the pushback period, mining activities will be limited to certain areas, causing gold grades to fluctuate until early 2026, with normal production expected to resume by March–April 2026.

BRMS produced around 64,000 troy ounces of gold last year. Despite a potential short-term dip in output during the fourth quarter of 2025, the company still targets production of 68,000–71,000 troy ounces in 2025, higher than the previous year’s output.

The company is also upgrading its first Carbon-in-Leach (CIL) processing plant in Poboya from 500 tons to 2,000 tons of ore per day, with completion expected in the second half of 2026. During this upgrade, the first CIL plant will be temporarily shut down, but BRMS’s second CIL plant continues to operate at 4,500 tons per day since mid-2025.

According to CPM Director Agus Sitindaon, the second plant’s high operational capacity is supported by the relatively soft nature of the ore, making it easier to process. Once the first CIL plant’s expansion is completed, both facilities are expected to process a combined 6,000 tons of ore per day by late 2026 or early 2027.

“We hope the expansion of the first CIL plant to 2,000 tons per day will be completed by October 2026,” Agus said.

Gold mining

BRMS’s underground gold mining project in Poboya is also showing strong progress, with the tunnel (decline) construction reaching over 350 meters as of August 2025. The mining contractor, PT Macmahon Indonesia, targets production to start by mid-2027.

BRMS President Director and CEO Agoes Projosasmito said the underground mine is estimated to contain high-grade gold deposits ranging from 3.5 to 4.9 g/t.

“The high gold content will be reflected in a significant increase in production during the second half of 2027,” he concluded.