Moody's Investors Service has downgraded the corporate family rating (CFR) for PT Bumi Resources Tbk (IDX: BUMI) to Caa1 from B3- Photo by the Company

JAKARTA (TheInsiderStories) – PT Gorontalo Minerals, a subsidiary of PT Bumi Resources Minerals Tbk (IDX: BRMS), obtained a Production Operation Activity License from the Ministry of Energy and Mineral Resources. The permit is the basis for the company to develop and operate copper and gold mines in Gorontalo Province.

Such permit is essential to develop and operate Gorontalo Minerals’ copper & gold mine. The permit allows three years period for the mineral producers to construct the infrastructures and processing facilities within the mine site.

Upon the completion of the three years construction period, the miner is permitted to start production for 30 years period until December 2052. Initially, Gorontalo Minerals is expected to start production in the second semester of 2021 at the rate of one million tons of ore per annum.

“We are currently exploring opportunity to produce the first batch of ore volume via heap leaching procedure earlier than expected,” said BRMS Director and Chief Operating Officer (COO), Suseno Kramadibrata, in a written statement, on Tuesday (03/05).

Gorontalo Minerals is 80 percent owned by BRMS and 20 percent by PT Aneka Tambang Tbk (IDX: ANTM). Currently the miner operates a Contract of Work rights to a 24,995 hectares mining concession in the Bone Bolango Regency, which is part of the Gorontalo Province in Sulawesi.

The mine sites operated by the company have a Resource Estimate of 400 million tons of ore (0.48 percent Cu, 0.43 g/t Au), and Reserve Estimate of 105 million tons of ore (0.7 percent Cu, 0.33 g/t Au).

Since March 2014, Gorontalo Mines has signed an agreement with PT Nusantara Smelting to develop opportunities to supply copper concentrate with facilities to be developed by Nusantara Smelting.

In August 2014, a report on the feasibility study of the Sungai Mak copper-gold project was approved by the government of Indonesia. Then on Dec. 18, 2014, the BRMS announced that its unit had completed a process of consultation with the community as part of the preparation of an environmental impact assessment, specifically related to mining on the Mak River.

Besides Gorontalo Minerals, BMRS has tin mine in Dairi (North Sumatra) and gold mine Poboya (Central Sulawesi). Development at the Poboya mine has been budgeted by the company led by US$150 million last year.

BRMS shares have remained stagnant at Rp50 since Feb. 28 and formed a market capitalization of Rp3.11 trillion (US$222.14 million). The company listed its shares on the stock since Dec. 9, 2010 at a price of Rp625.

Data from the Indonesia Stock Exchange shows that 87.09 percent of BMRS shares owned by PT Bumi Resources Tbk (IDX: BUMI) and 12.91 percent are owned by the public. Until the end of September 2018, the company still booked a loss of parent entity attribution of $3.95 million, and has been losing streak since at least 2012.

So far, the company’ revenue has come from the compensation of mining advisory services to Bellridge Holdings Limited of $1.18 million and $5 million for the end of September, respectively in 2018 and 2017.

US$1: Rp14,000

Written by Lexy Nantu, Email: