In Indonesia, a significant development in the commodities sector is making headlines. PT Merdeka Copper Gold Tbk, through its subsidiary PT Bumi Suksesindo (BSI), is on the brink of launching a world-class underground copper mining project. According to Tom Malik, the General Manager of Communications at MDKA, this new venture is set to be Indonesia’s third-largest copper mine, following those owned by PT Freeport Indonesia and PT Amman Mineral Internasional Tbk.
Originally, BSI was primarily known for its gold mines, but now it is transitioning to include significant copper mining operations. More specifically, the Tujuh Bukit underground mine in Banyuwangi, East Java, represents a shift from open-pit to underground mining methods. Tom Malik shared these insights during the Merdeka’s Workshop for Journalists, highlighting the strategic expansions underway.
The development of the Tujuh Bukit copper project has been substantial. The underground tunnel for the mine has reached a length of 2 kilometers, with an investment of nearly $200 million since 2017, primarily allocated to feasibility studies and preliminary infrastructure.
BSI’s investment has substantially increased the estimated resources of the mine. Recent figures show that the indicated resources at Tujuh Bukit have surged by 71%, going from 442 million tons to a remarkable 755 million tons. Overall, the project’s combined mineral resources (indicated and inferred) have grown from 1.706 billion tons to 1.738 billion tons, with copper contents of 0.47% and gold contents of around 0.5 grams per ton.
This increase translates into a significant boost in potential output. The extractable copper has risen from 2.7 million tons to 4.5 million tons, and the gold yield has jumped from 9.4 million ounces to 16.1 million ounces. Consequently, the updated total mineral resources of the Tujuh Bukit project now stand at 8.2 million tons of copper and 27.9 million ounces of gold.
This project not only underscores the growth of Indonesia’s mining sector but also emphasizes the evolving focus on sustainable and efficient mining practices in extracting valuable commodities. The expansion of the Tujuh Bukit mine is a clear indication of Indonesia’s strengthening position in the global commodities market, particularly in copper.
