PT Bumi Resources Minerals Tbk (BRMS), a gold mining sector company, is accelerating the construction of a gold processing plant in Gorontalo, targeted for completion by June 2026. This gold ore processing plant in Gorontalo will have a capacity of 2000 tons of ore per day.

Herwin Hidayat, Director & Chief Investor Relations Officer of BRMS, stated that BRMS's main focus is the construction of the new gold plant in Gorontalo, which is planned to be completed by June 2026.

In addition, BRMS is also finishing the construction of a third gold plant using the heap leach method, located in Palu, which is expected to be completed by the end of this year.

"This plant will play an important role in increasing gold production capacity in the future," Herwin told Kontan on Wednesday, July 31.

From January to June 2024, BRMS recorded gold production reaching 26,744 ounces or 832 kilograms. This production achievement has already surpassed the production figure in the first half of 2023, which was recorded at 7,611 ounces or 236 kilograms.

"At the beginning of this year, we set a gold production target for the entire year of 2024 above 35,000 ounces. This is a much higher figure compared to the 2023 gold production, which only reached 23,270 ounces or 724 kilograms," Herwin revealed.

BRMS is optimistic that global gold demand will remain high in 2024 due to several factors. First, the ongoing geopolitical uncertainty, which makes gold a safe haven and drives demand for this precious metal.

Second, many countries are starting to replace the US dollar with their own currencies as foreign exchange reserves. Consequently, the accumulation of gold purchases is being made to strengthen each country's currency.

Third, there is an excess demand for our gold products to date.