PT Bumi Suksesindo (BSI), a subsidiary of PT Merdeka Copper Gold Tbk (MDKA), is set to operate Indonesia’s third-largest copper mine.

The mine is part of the Tujuh Bukit Gold Project, located in Sumberagung Village, Pesanggaran District, Banyuwangi Regency, East Java.

General Manager of Operations and Head of Mining (KTT) at PT BSI, Roelly Fransza, stated that the project is still in the study phase.

"We are being very cautious in conducting this study, especially since it's an underground mine. This is part of the transition from an open-pit to an underground mine," he told the media at the Tujuh Bukit Gold Mine in Banyuwangi, East Java, as quoted on Saturday (26/10/2024).

According to Roelly, this underground mine holds one of the largest copper reserves globally, comparable to other locations like Batu Hijau and Freeport in Papua.

Regarding the timeline for starting underground mining operations, Roelly estimates it could begin after surface mining ends in 2029.

However, he doesn't rule out the possibility of starting earlier.

"If we can start sooner, why not? This is valuable input for the country," said Roelly.

The production potential of this copper mine is also part of the ongoing study.

According to the Preliminary Feasibility Study, at peak production, the Tujuh Bukit Copper Project is expected to process 24 million tons of ore per year, yielding over 110,000 tons of copper and 350,000 ounces of gold annually for more than 30 years.

Investment in the project, with studies currently ongoing, has already reached approximately USD 200 million.

While the operational budget is still being calculated, initial projections indicate a requirement of USD 1 billion for the first year.

The Tujuh Bukit Copper Project, one of the world's largest untapped copper reserves, lies beneath the Tujuh Bukit Gold Mine.

As of March 2024, the latest Mineral Resources Estimate (MRE) for the project reports an increase in indicated mineral resources.

The total mineral resources have risen from 1.706 to 1.738 billion tons, with indicated resources growing from 442 to 755 million tons.

Consequently, the resources now contain an estimated 8.2 million tons of copper and 27.9 million ounces of gold, up from 8.1 million tons of copper and 27.4 million ounces of gold.

Once operational, the Tujuh Bukit Copper Project will be Indonesia’s third-largest copper mine and has the potential to boost national copper production by 10-15 percent.

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