Merdeka Copper (MDKA) & Bumi Resources Minerals (BRMS) Accelerate Expansion

Gold miners’ expansion strategies are centered on boosting production capacity and asset portfolios, while capitalizing on gold prices at all-time highs.

PT Merdeka Copper Gold Tbk. (MDKA), for instance, is developing an underground mine at Tujuh Bukit, Banyuwangi, and the Pani gold project operated by PT Merdeka Gold Resources Tbk. (EMAS) in Gorontalo.

Meanwhile, PT Bumi Resources Minerals Tbk. (BRMS) plans to draw a USD 600 million syndicated loan to fund an underground mining project in Palu as well as exploration activities and plant construction.

Senior Market Chartist at Mirae Asset Sekuritas, Nafan Aji Gusta Utama, said the expansion moves by the two issuers are expected to strengthen production capacity, asset portfolios, and exploration activities to lift the average selling price (ASP).

Nafan also sees the potential rise in gold prices as a major opportunity for mining issuers. Goldman Sachs projects a maximum gold price of up to USD 5,000 per troy ounce by 2026.

“So far, BRMS’s fundamentals are quite good and MDKA is expected to follow. The key is that expansion strengthens company performance so it can act as a positive catalyst,” Nafan said, Tuesday (11/11/2025).

Based on exploration results and feasibility studies, MDKA’s Tujuh Bukit underground mine is projected to process 24 million tons of ore per year. Annual output is estimated at 110,000 tons of copper and 350,000 ounces of gold.

If it operates as planned, the facility could contribute 15% of national copper production. For comparison, PT Freeport Indonesia produces around 600,000 tons of copper per year, while PT Amman Mineral Internasional Tbk. (AMMN) produces 200,000 tons from the Batu Hijau Mine.

Tom Malik, Head of Corporate Communication at Merdeka Copper Gold, stated that underground exploration at Tujuh Bukit has been underway since 2018 with an initial investment of USD 200 million. Total development investment is estimated to reach USD 1.5 billion (around IDR 24.99 trillion).

“With projected production of 110,000 tons of copper per year from Tujuh Bukit underground, MDKA will position itself as the third-largest copper producer in Indonesia,” he said in Banyuwangi, East Java, last week.

In addition, the company’s subsidiary EMAS is developing the Pani gold project, which is expected to begin operations in the first quarter of 2026. To date, EMAS has invested USD 208.7 million in the Pani mine.

“Merdeka Group has several large projects underway. Going forward, there will certainly be corporate actions to support their development, including for the Tujuh Bukit underground mine,” Tom Malik added.

As of the third quarter of 2025, the Tujuh Bukit gold mine recorded production of 25,338 ounces with an average selling price of USD 3,275 per ounce, generating unaudited revenue of USD 104 million for 3Q25.

Meanwhile, the Pani gold project reached 83% completion, with mining started in October and the first ore stacking in November 2025.

“The Tujuh Bukit copper project and the Pani gold mine are large-scale growth opportunities that will advance the company,” said Merdeka Copper Gold President Director, Albert Saputro.

Source: https://akses.ksei.co.id/pusatinformasi/berita/691335b84e7d6a0e824b9bf7

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