Jakarta. Mining giant Merdeka Copper Gold (MDKA) reported an increased production in 2023.

Merdeka Copper Gold produced 138,666 ounces of gold with a total cost of $842/oz and a sales price of $1,939/oz. This marks an increase from 2022, during which the company produced 125,133 ounces of gold. 

The Tujuh Bukit gold mine is aiming to produce between 100,000 and 120,000 ounces this year. Gold price has now reached $2,000/oz, and is expected to continue to rise this year, according to MDKA’s press release. 

Bumi Suksesindo (BSI) --Merdeka’s subsidiary which is in charge of the Tujuh Bukit gold mine-- also took home the Pusaka Terbina Utama award from the East Java government. This award recognized the company’s environmental management. They also won the Tamasya Award from the Energy Ministry for its community empowerment efforts. 

BSI has also finished the reforestation of 1,991 hectares of compensation land. BSI claimed that this became the largest reforested compensation land ever given by the private sector to the government.

Throughout 2023, the BKP-BTR-managed Wetar Mine produced 12,706 tons of copper with costs totaling $3.74/kb and the average sales price stands at $8,578/t. BKP-BTR also found a new source of revenue from sending approximately 30,000 tons of pyrite ores to the acid iron metal factory operated by Merdeka Tsingshan Indonesia (MTI), a subsidiary of Merdeka Battery Materials. In 2024, the Wetar copper mine aims for between 14,000 and 16,000 tons in production.

Merdeka Battery Materials produced 95,450 tons, according to the release. Approximately 65,117 tons were nickel pig iron, while the remaining 30,333 tons were nickel matte. As the three rotary kiln electric furnace facilities increase their capacity, Merdeka Battery Materials are developing high-pressure acid leach (HPAL) facilities in Indonesia Morowali Industrial Park and Indonesia Konawe Industrial Park. These facilities are expected to begin operation by the end of 2024.

The SCM nickel mine, which is set to fully operate this year, will also boost Merdeka’s performance in the nickel sector. It will produce 4 million tons of saprolites and 11 million tons of limonites.

MDKA has invested over $114 million in running the Pani gold project, which lies in Gorontalo and hosts 6.6 million tons of the precious metal. MDKA is planning to invest $200 million for phase 1 which will begin production by the end of 2025. 

The acid, iron, metal (AIM) project will enter operations in the first quarter of 2024 following the commissioning process, according to MDKA. This project, which is located in Morowali, Central Sulawesi, is expected to serve the downstream industry of the electric vehicle battery supply chain by supplying the acid and steam needed by the HPAL facility. The AIM raw materials will entirely come from the leftover ores and the quality pyrite ores from the Wetar copper mine.

The Tujuh Bukit copper project, which is in Banyuwangi, will start production by the end of 2026. The project is home to 1.71 billion tons of mineral resources with a 0.47 percent copper content and 0.50 g/t gold. Merdeka has invested $185 million since 2018 for a thorough feasibility study.

“Merdeka has booked a highly productive performance in the fourth quarter of 2023, and also throughout the year. The projects that will begin operations in 2024 and the coming years will cement Merdeka group’s position as the leading mining company in Indonesia,” Merdeka Copper Gold general manager for communications Tom Malik was quoted as saying in a recent press statement. 

“Aside from operational performance and project developments, Merdeka will uphold its commitment and performance to the environmental, social, and governance [ESG] principles. This is shown by Merdeka’s improved MSCI ESG rating rankings from BBB to A last year. We pledge to give added value for our shareholders, the people, and the environment,” Tom said.