According to The Nikkei on October 2, Indonesian gold and copper miner Merdeka Gold Resources has commenced large-scale gold mining operations in northern Sulawesi. The company reported that the deposit contains approximately 200 tonnes of gold reserves, making it one of the largest gold mines in Indonesia. Rising global gold prices have fueled growing domestic demand for gold as an investment and store of value.

Merdeka Gold Resources has begun mining at the Pani Gold Project in Gorontalo Province, Sulawesi. The mine is designed to process 7 million tonnes of ore annually, with a target gold production of 4 tonnes per year. Ore processing capacity is expected to increase further by 2030.

The company listed on the Indonesia Stock Exchange (IDX) on September 23, selling approximately 10% of its issued shares and raising IDR 46.6 trillion (about US$280 million). The proceeds will be used to expand its gold production capacity.

Indonesia is the world’s eighth-largest gold producer, and an increasing number of Indonesians are turning to gold as a hedge against economic uncertainty. Amid heightened geopolitical risks and domestic economic volatility, the price of gold sold by state-owned mining giant Antam reached a record high of IDR 2.23 million per gram on October 1.

On September 29, an Antam executive announced that the company expects its gold sales to rise from 43 tonnes in 2024 to 45 tonnes in 2025. The company has already imported approximately 30 tonnes of gold from Singapore and other locations since the beginning of this year.

(Source: Reference News)