PT Merdeka Copper Gold Tbk underground copper mining project. (MDKA) is estimated to be ready to operate in 5 years or starting in 2028. MDKA Corporate Communication GM Tom Malik said, the Tujuh Bukit copper mine project, under the Tujuh Bukit gold mine, in Banyuwangi, East Java, will operate in 2028. The copper project is being prepared to be one one of the largest copper projects in the world. Based on MDKA data, the mine's mineral resources total 1,784 Mt of ore containing around 8.2 million tonnes of copper and 28.6 million ounces of gold, including an indicated resource of 372 Mt.
Tom said the ore content could be compared to the Batu Hijau gold copper mine in Sumbawa owned by PT Amman Mineral Nusa Tenggara and the Grasberg Mine owned by PT Freeport Indonesia in Mimika Regency, Papua. "So if this copper mine starts production it can increase Indonesia's copper production by 30-40 percent. It is planned to operate in 2028," said Tom during a media visit to Bisnis Indonesia, Thursday (9/2/2023).
Since 2018, MDKA has invested nearly US$150 million to conduct exploratory studies. Later, copper production from the Tujuh Bukit mine will be further processed following the ban on the export of copper concentrates. “We see what alternatives to process the concentrate that will be produced. Because if the copper from our mine in Wetar is already operating, it can still be exported because it is in the form of plates.
Last year the production was almost 20,000 tons," he explained. Merdeka has appointed Stantec and DRA as the main technical consultants to complete the pre-feasibility study (PFS) in the first quarter of 2023. The PFS will include technical and economic feasibility checks of an initial 4 million tonnes per annum sub-level cave (SLC) focusing on the high grade upper portions of the deposit. The potential expansion of SLC's operations will enable Merdeka to significantly reduce its up-front pre-production capital investment and reach production earlier before moving on to the development of the larger 24 million tonnes per annum cave block operation envisaged in the scoping study.
The SLC operation will make the high grade Seven Bukit copper ore accessible earlier enabling MDKA to apply SLC's operational understanding and enhance understanding of the ore to minimize risks and optimize block expansion. With the licensing process starting with the Government of Indonesia's feasibility study having been completed and approved in mid-2022, MDKA targets the next process, namely environmental licensing, to be completed in September 2023, and construction can start in early 2024.
