Merdeka Copper Gold recently talked of its ongoing projects, including Indonesia’s one of biggest primary gold mines, which could help the country’s economic growth and energy self-sufficiency.
The company -- known by its ticker symbol MDKA -- is currently working on two projects, namely the Pani Gold project in Gorontalo and the Tujuh Bukit Copper Project. As part of the government’s strategy of developing the downstream nickel industry, MDKA has also built a high-pressure acid leach (HPAL) facility. Its subsidiary Merdeka Battery Materials (IDX: MBMA) operates this facility.
The Pani Gold Project in Gorontalo will be one of the largest primary gold mines in Indonesia, which is expected to be operational by the end of 2025. With a total mineral resource content of 303.1 million tons of ore containing 6.9 million ounces of gold, this project is predicted to be a low-cost and long-lived gold mine. The feasibility study shows that the Pani Gold Project will be a significant source of income for the Merdeka group in the future, reaching USD 11.4 billion, with EBITDA (earning before interest, taxes, depreciation, and amortization) of USD 7.4 billion during the first 10 years of operation.
The Tujuh Bukit Gold Mine is an open pit mine in Banyuwangi, East Java, which digs mineral ore and extracts gold and silver content using an efficient leaching method. This project also entirely runs on renewable energy powered by the Kamojang geothermal plant. Indonesia named this Bumi Suksesindo or BSI-ran project a national vital object for the quality of its mineral resources, which are a strategic asset to the country.
The Tujuh Bukit Copper Project is still in the pre-production phase. According to MDKA, this is one of the world’s largest copper projects. It contains a potential of 8.2 million tons of copper and 27.9 million ounces of gold. The development of this underground mine will take place in phases, and boasts great economic benefits. At its peak production, the project will process 24 million tons of ore per year to produce more than 110,000 tons of copper and 350,000 ounces of gold annually for more than 30 years.
MDKA’s Corporate Communication Head Tom Malik said that the company would continue to develop the potential of existing resources with a strict environmental-based approach to achieve its goal of operating a world-class mine.
"MDKA's has a very bright future ahead. We are currently concentrating on opening new operations through the Pani Gold Project in Gorontalo and the Tujuh Bukit Copper Project in Banyuwangi. Both have significant resource reserves, and hold huge potential,” Tom said.
MDKA’s subsidiary MBMA seeks to become a leading vertically integrated battery material company by developing major midstream and downstream projects in the value chain. It also continues to develop several HPAL processing plants in partnership with leading global battery material companies. The HPAL facility will process limonite nickel ore from the MBMA’s SCM Mine to produce mixed hydroxide precipitate (MHP), a precursor for the electric vehicle battery industry. The HPAL facility shows MDKA’s commitment to developing Indonesia’s downstream nickel industries. The technology processes nickel ores into high-value derivative products, and plays a role in developing a robust battery value chain.
These aforementioned mining projects and the HPAL facilities show MDKA’s commitment to driving Indonesia’s economic growth, domestic processing policy, and its energy self-sufficiency.
The success of these projects will have a significant impact on Indonesia, both economically, socially, and environmentally. MDKA also underlined that the government, companies, and community need to work as a team to unlock Indonesia’s goal of becoming a developed and sustainable country.
"With an excellent track record of resource management that is recognized regionally and internationally, MDKA is ready to face the future with our prestigious projects. Of course, we are committed to comply with the existing regulations and support the government’s downstream industry development policies,” Tom said.
