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Indonesia’s Bumi Resources Ready to Produces Gold This Year

PT Bumi Resources Minerals Tbk (IDX: BRMS) ready to produce 100,000 tons of gold in the coming year, said the company today (10/07) - Photo by the Company

JAKARTA (TheInsiderStories) PT Bumi Resources Minerals Tbk (IDX: BRMS) ready to produce up to 180,000 tons of gold in this year, said the company today (10/07). The Indonesian miner announced that the construction of its production facility in the Poboya’ Gold Mine Site in Palu, Central Sulawesi is nearly completed.

Through its 96.97 percent ownerships at PT Citra Palu Minerals, unit of PT Bumi Resources Tbk (IDX: BUMI), operates over 85,180 hectares gold mine concession in Central and South Sulawesi. The gold mine project has around 3.9 million ton of ore reserves and 7.9 million ton of ore resources.

”We expect to commission our production facility soon. Hopefully, the trial production from our Poboya mine site can commence in the fourth quarter of 2019 as scheduled,” said Suseno Kramadibrata, the CEO and president director of BRMS in an official statement on Monday.

As previously disclosed, in the first year, Bumi Resources Minerals’ gold mine project’ production is estimated at 100,000 tons of ore. The production level is expected to go up to 180,000 tons of ore in the second year

If all the mining activities going smooth, gold production from the Palu mine could increase to 600,000 tons of ore in the next few years.

Referring to the first half (1H) of 2019 financial report, Bumi Resources hold 35.73 percent Series A BRMS and public 5.30 percent. While, Series B shares were held by the 1st Financial Company Limited 22.86 percent, PT Biofuel Indo Sumatra 10.91 percent, Wexler Capital Pte Ltd. 10.11 percent, Fountain City Investment Ltd 8.02 percent and public 7.07 percent.

In addition to gold production in Palu, the miner is also awaiting tin production from the Dairi mines, which is projected to start operating in two years time. PT Dairi Prima Mineral, the operator of the mines, has obtained a 30-year production permit for Dairi Lead-Zinc Mine in North Sumatra.

Bumi Resources holds an 80 percent stake in Dairi Prima and the remaining belongs to PT Aneka Tambang Tbk (ANTM). The subsidiary obtained production licenses for lead and zinc mines on Dec. 18, 2017.

The construction of the Dairi Prima’ zinc mine will take 22 months and is expected to start producing by the end of 2019. The Dairi deposit, is one of the premiere underdeveloped lead-zinc deposits, contains an estimated 1.2 million tons of zinc, 0.7 million tons of lead and over 3 million ounces of silver.

The expected ore production, according to the feasibility study, will be 1 million tons of ore per annum (approximately 3,000 t/day). A second resource on the same concession known as Lae Jahe is expected to contain a similar amount of zinc, lead and silver.

Dairi Prima Mineral is an underground zinc mining project. In addition to zinc sulfide ore, the company will also mine secondary ores such as galena, which is the mineral form of lead sulfide and silver.

The company holds a Contract of Work (CoW), which was granted by the government on Feb. 18, 1998. Under the term of the CoW, the company may explore for minerals in a 27,420-hectare area, located in North Sumatra and Nangroe Aceh Darussalam provinces.

In July 2012, the government issued the company a so-called Borrow-Use Permit that clears the way for them to commence the development and production of the mine.

While Citra Palu mine, according to Seno, has greater ore potential than PT Kaltim Prima Coal. Compared to tin production in Dairi, Sumatra, in twor years the potential income could be pocketed US$300 million for seven years from just one mine.

Written by Staff Editor, Email: theinsiderstories@gmail.com