PT Merdeka Copper Gold Tbk, an Indonesian gold mining company, has allocated US$390 million to finance several projects through capital expenditures until 2023.
The company holds significant assets of Tujuh Bukit Copper Project, Nickel Mining Project, and Refinery Assets. Other projects include the Pani Gold Project, Wetar/Morowali Acid Iron Metal and Wetar Copper Mine. The Tujuh Bukit Copper Project in Banyuwangi, East Java, is one of the world’s top unexplored gold and copper deposits containing 8.2 million tons of copper and 28.6 million ounces of gold.
“We provide capital expenditures in support of existing operations. Regarding investment projects, we estimate to invest US$50 billion in feasibility studies and start the mine drilling in 2022,” said Merdeka Director Thomas Fowler on June 10, 2022.
Merdeka has spent US$72 million or IDR1.05 trillion from its Capex of US$390 million in the first quarter of 2022. From this number, approximately US$8 million will be allocated to the Tujuh Bukit gold mine, US$10 million to the copper mine, US$14 million to the Wetar copper mine and US$40 million to Acid Iron Metal project.
The company acquired 50% of Lion Selection Asia Limited (LSA) at PT Pani Bersama Jaya during the first quarter of 2022, bringing Merdeka’s total shares at Pani Gold Project to 70%.
Through its subsidiary PT Batutua Tembaga Abadi, Merdeka acquired 55.67 percent shares of PT Hamparan Logistik Nusantara. Hamparan has obtained a nickel mine project with the largest nickel ore reserves in the world and a nickel smelter currently in operation.
Merdeka Corporate Secretary Adi Adriansyah Sjoekri said that the company recorded a positive financial and operational performance in the 2022’s first quarter. In the same period, Merdeka produced 33,968 ounces of gold, an increase of 104.8% compared to 16,585 ounces produced in the same period the previous year. In the first quarter of 2022, the company had 5,267 tons of copper, a 111.6% increase over the same period in 2021.
The company aims to produce 100,000 to 120,000 ounces of gold with AISC (all-in sustaining cost) for a price between US$1,000 and US$1,100 per ounce. The Wetar copper mining project, on the other hand, is expected to yield approximately 18,800 tons to 22,200 tons of copper at the cost of US6,820 per ton to US$7,480 per ton.
In September 2020, Merdeka had to halt its gold production at its Tujuh Bukit Project site due to an incident that caused damage to pipes and pumps. Local media reported that the incident of subsidence on the surface of the heap leach pad did not cause any casualties or injuries to workers on site. The company also ensured there was no environmental damage caused by it.
