Jakarta-based PT Merdeka Copper Gold Tbk (MDKA) is making strides in the commodities market by ramping up work on the Pani gold mine project located in Pohuwato, Gorontalo. This mine is touted to possess a hefty 6.7 million ounces of gold, making it a hotspot for mineral resources.
The General Manager of Communications at MDKA, Tom Malik, announced that this project is expected to become Indonesia’s largest primary gold mine. Projections suggest that the mine could yield about 500,000 ounces of gold annually, which will significantly contribute to the local gold market. Tom Malik discussed these details while addressing a gathering of journalists at the Merdeka’s Workshop for Journalists event.
Malik also mentioned that commissioning of the Pani gold mining project is targeted for the end of 2025, with the inaugural gold production anticipated for early 2026. This will put Indonesia on the map as a major player in the global gold commodities sector.
From the company’s filings, it’s clear that MDKA, owning a 70% stake in the Pani Gold Project, has already committed around $114 million towards defining the resource, metallurgical testing, and infrastructure since 2022.
For its initial development, the Pani Gold Project is set to implement a low initial investment strategy of $250 million. This funding is slated for the construction of Heap Leach (HL) production facilities. The initial production capacity is planned at 7 million tons per year (Mtpa), which is projected to produce approximately 140,000 ounces of gold annually.
Merdeka is slated to continue its expansion with the construction of a Carbon-in-Leach (CIL) processing facility starting early in 2027. This next phase, with a 7.5 Mtpa capacity, will see an investment of $633 million. A further expansion at the start of the 2030s plans to boost capacity to 12 Mtpa with an additional $294 million investment.
The combined HL and CIL capacities will eventually peak at 19 Mtpa, which could translate to an impressive 500,000 ounces of gold per year.
According to the Feasibility Study (FS) that has taken conservative estimates into account, the Pani Gold Project is anticipated to become a major revenue stream for Merdeka, with potential earnings reaching $11.4 billion and EBITDA marked at $7.4 billion over the first 10 years of operation.
The FS results also confirm that the project’s all-in sustaining costs (AISC) are quite competitive, averaging $872 per ounce. This low-cost efficiency is backed by Merdeka Group’s extensive experience in managing mines using the HL method, such as the Tujuh Bukit Gold Mine and Wetar Copper Mine.
These developments signify a big leap for Indonesia in the commodities domain, particularly for its standing in the gold industry.