Indonesia to accelerate oil and gas exploration amid high prices

The estimated target for exploratory drilling has been increased to 57 wells, almost double the 30 exploratory wells drilled last year.

Divya Karyza

Divya Karyza

The Jakarta Post

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The gold mining site of Bumi Suksesindo, a subsidiary of PT Merdeka Copper Gold. (kontan.co.id./Ridwan Mulyana)

January 26, 2023

JAKARTA – Publicly listed mining firm PT Merdeka Copper Gold has allocated capital expenditure (capex) of Rp 2.28 trillion (US$160 million) for the exploration of work in East Java, Maluku and Gorontaro provinces.

Corporate secretary Adi Adriansyah Sjoekri revealed the projects were gold and silver mining in Tujuh Bukit, East Java; copper mining in Wetar Island, West Maluku; and gold mining in Gorontalo.

“All of the expansion projects will be completed this year so that they will optimally contribute to the company’s performance soon,” said Adi, recently.

Merdeka’s gold production in 2018 grew by 17.57 percent to 167,506 ounces from 142,468 ounces in 2017. It targeted to increase its gold production to between 180,000 and 200,000 ounces of gold by the end of 2019.

“Up to the first quarter of this year, our company has produced 46,515 ounces of gold,” Adi said, adding that the average price of gold in 2018 was $1,269 per ounce, or 0.89 percent higher than the $1,257 per ounce average price in 2017.

Apart from exploring new blocks, Adi said the company was also in the process of expanding the existing mining in Tujuh Bukit, East Java. (syk/bbn)

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