Merdeka Copper Gold to Develop Major Copper Mine in Banyuwangi

Significant Copper Discovery

PT Merdeka Copper Gold Tbk (MDKA) is advancing a major copper mining project at its Tujuh Bukit site in Banyuwangi, East Java. The underground mine is expected to become the third largest copper mine in Indonesia. The discovery was made after extensive exploration efforts that began in 2018, involving the creation of a nearly 2 km long tunnel and further drilling at depths of almost 100 meters below sea level.

Exploration and Development Status

The company has invested approximately US$200 million in exploration activities to determine the extent of the copper and gold deposits. Current estimates indicate 8.2 million tons of copper and 27.9 million ounces of gold reserves. The project is currently in the pre-production stage, with a feasibility study underway that is expected to be completed by the end of 2025.

Investment and Production Plans

MDKA is considering a significant investment of between US$1 billion and US$1.5 billion for the development of the underground mine. The company is also evaluating options for smelter construction, which would add to the overall investment. For the current year, MDKA is targeting 100-110 thousand ounces of gold and 11-13 thousand tons of copper production.

Operational Continuity

The development of the copper mine is part of MDKA's broader strategy to maintain operational continuity at Tujuh Bukit. The existing gold mine operation is expected to continue until 2030, and the company is planning a transition to underground copper mining without operational downtime. This strategic move is expected to extend the mine's operational life and maximize resource utilization.