PT Merdeka Copper Gold Tbk (IDX: MDKA) announced the completion of the Pani Gold Project Feasibility Study. The project is expected to produce up to 500,000 ounces of gold per annum and become one of the largest primary gold mines in Indonesia and the Asia Pacific.

The Pani Gold Project (PGP), in which Merdeka holds a 70% interest, contains mineral resources of 6.7 million ounces of gold. The project is estimated to have a production capacity of 19 million tons of ore per year and peak production could produce up to 500,000 ounces of gold per year. Study results confirm that the project is long-lived, low-cost, and has very attractive prospects.

"PGP will become one of the largest primary gold mines in Indonesia and the Asia Pacific," said President Director of PT Merdeka Copper Gold Tbk Albert Saputro in a written statement on Tuesday (12/3/2024).

Since 2022, Merdeka, a national mining company with global-scale assets, has invested approximately USD 114 million in resource definition, metallurgical testing, and infrastructure. The company is targeting project commissioning in late 2025, with the first gold production scheduled for early 2026.

In addition, Merdeka will invest USD 250 million for the initial development of a heap leach production facility by 2025. Production capacity at this stage will reach 7 million tons of ore per year.

In the next phase, Merdeka will build a Carbon-in-Leach (CIL) processing facility in early 2027 with a capacity of 7.5 million tons of ore with an investment value of USD 633 million. Further expansion will be carried out in early 2030 with an additional production capacity of 12 million tons per year and an investment of around USD 294 million.

With the existence of the heap leach and CIL production facilities, the total ore processing capacity can reach 19 million tons at peak production.

Based on the results of the Feasibility Study (FS) using conservative assumptions, PGP will be a significant source of revenue for Merdeka in the future, reaching USD 11.4 billion. Then, the amount of Earning Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of USD 7.4 billion during the first 10 years of operation.

The FS results also confirm that the all-in-sustaining costs (AISC) averaging USD 872 per ounce make the project highly efficient and low-cost.

"The Pani Gold Project, which is expected to be in production for around 20 years, is an important milestone in Merdeka Group's expansion into world-class operations and projects with a long mine life. We believe the operation of this project will also have a positive impact on the economy of the surrounding community and the economy of Pohuwato Regency and Gorontalo Province in the long term," Albert said.

This is also supported by Merdeka Group's long experience in developing and operating the Tujuh Bukit Gold Mine in Banyuwangi and the Wetar Copper Mine, both of which utilize the heap leach method.

Image source: Detik.com / Merdeka Copper Gold
Source: https://www.detik.com/sulsel/bisnis/d-7237821/merdeka-copper-gold-umumkan-rampungnya-studi-kelayakan-proyek-emas-pani