PT Indika Energy Tbk (INDY), is ramping up operations at the Awak Mas gold mine as a key pillar of its non-coal business. The company is also completing construction of a gold refining smelter with an investment of USD 426 million, or IDR 7.09 trillion.

Indika Energy Director Johanes Ispurnawan explained that the gold mine project is progressing on schedule. Trial production will begin in the fourth quarter of 2026, while full operations are expected in 2027.

“So by 2027 everything can run as we planned and, of course, start generating returns,” Johanes said during Indika Energy’s public exposure in Jakarta, Thursday (Nov 27).

Indika Energy Director Retina Rosabai said the company currently has permits to operate three pit areas—Awak Mas, Tarra, and Salu Bulo—through its subsidiary PT Masmindo Dwi Area. All of these sites are located in Luwu Regency, South Sulawesi.

Retina said the total concession area is 14,390 hectares, with around 1,444 hectares—or 10% of the concession—ready for development. The company holds a Contract of Work (CoW) valid until 2050, which can be converted and extended as an IUPK (Special Mining Business License) until 2070.

She added that the Awak Mas project is now in the construction phase and is targeted to conduct its first trial gold production in December 2026. Mining will use an open-pit method, while gold processing will employ the carbon-in-leach (CIL) technique.

In terms of potential, the Awak Mas gold project has resources of 2.55 million oz, reserves of 1.51 million oz, and a planned output of 100,000 oz per year with a gold grade of about 1.37 grams per ton.

For cost estimates at the Awak Mas pit area, the company projects a cash cost before royalties of around USD 1,150 per oz, while sustaining capital cost is in the range of USD 50 per oz.

Assuming a gold price above USD 3,000 per oz, the royalty rate will be at the highest tier—16%—in line with the royalty scheme under Government Regulation (PP) No. 19/2025.

Preparing a Gold Refining Smelter

Indika Energy President Director Azis Armand said the company is also building a gold refining smelter. Based on 2022 calculations, the project investment amounts to USD 426 million, or IDR 7.09 trillion.

“This isn’t just a plan (to build a smelter); we are already building it,” Azis said.

Azis also stated that Indika Energy has engaged several contractors for the construction of the processing plant, and that the entire process is being carried out in collaboration with Indika Energy. He hopes the process will move quickly, noting that project progress has accelerated in recent months.

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