Introducing Merdeka Copper Gold

PT Merdeka Copper Gold Tbk. (“the Company”) was founded in 2012 as a holding company with two operating subsidiaries that are engaged in the mining business, encompassing the exploration and future production of gold, silver, copper and other related minerals. The two subsidiary companies are PT Bumi Sukesindo (BSI), which holds the Mining Operating Permit for Production dated 9 July 2012 and PT Damai Sukesindo (DSI), which holds the Mining Operating Permit for Exploration dated 10 December 2012.

The Company’s major asset is the mining project known as the Tujuh Bukit Project which is located in the Banyuwangi Regency, East Java, approximately 205 kilometers southeast of Surabaya.

The Tujuh Bukit Project is one of the world's top undeveloped gold and copper projects with an estimated total JORC Compliant Resource containing 19 billion lbs of Copper and 28 million oz of Gold.

The Tujuh Bukit Project actually comprises two distinct mining development opportunities: the first development is a low capital cost, low operating cost and high margin Oxide Gold Silver Project and the second is the future potential development of the world class Copper Gold Porphyry Project.

The Oxide Gold Silver Project is an industry standard heap leaching operation.  The total JORC Resource for the Oxide Project is 90 million tonnes (Mt) of ore at an average grade of 0.73 grams per tonne gold (g/t Au) and 25.7 grams per tonne silver (g/t Ag). The Oxide Project will use conventional open pit mining, ore stacking and leaching and the industry standard ADR (Adsorption, Desorption, Recovery) gold processing plant to process 3mt ore per year and produce up to 90,000 oz of gold and 1 million oz of silver per year from 2016 – 2025. The estimated mine ore production over the 8 – 9 years mine life is 24,5 mt ore.

The world class Tujuh Bukit Porphyry Project currently has a JORC Compliant Resource of 1.9 billion tonnes of ore at an average grade of 0.45% Copper (Cu), 0.45 gram per tonne gold (g/t Au) and 93 gram per tonne Molybdenum (g/t Mo).  The potential future development of the Tujuh Bukit Porphyry Project will once again show the world that Indonesia hosts some of the world’s best mining projects.

The Company has two major Indonesian shareholders, which are PT Saratoga Investama Sedaya, Tbk and PT Provident Capital Indonesia. The former is Indonesia’s leading investment-holding company renowned for its strong, hands-on management approach in unlocking value from companies it invests in, while the latter is a leading investor and manager of businesses in Southeast Asia and Australia, including a number of gold mine operations that are listed on the the Australian Stock Exchange.

The Company has granted 10% of its shares to the regional government of Banyuwangi, representing the participatory rights of the people of Banyuwangi in the Company’s mining projects. The intention of the share grant is to provide the community of Banyuwangi Regency, particularly those who live around the gold mining location, with the sustainable economic benefits from the gold mining project.








The location of the BSI and DSI mines, as set forth in the mining production and exploration permits, is at the Sumberagung Village, Pesanggaran District, approximately 60 kilometers Southwest of the seat of government of the Banyuwangi Regency, and some 205 kilometers due Southeast of Surabaya, the capital city of East Java. Access to the mine areas of BSI and DSI can be reached by land transportation from Surabaya in nine hours, and around seven hours from Denpasar, Bali, including 1-2 hours of ferry transport across the Bali Strait. Another option would be a short airplane flight from Surabaya to Banyuwangi, followed by a lone-hour car drive to the site. A helicopter service from Bali is also available for approximately 40 minutes of flying time, which are often used to transport personnel to and from the mine site. 
The map above, illustrates locations of the mining permits of BSI and DSI in East Java Province.
Pre-development Project
Tujuh Bukit Porphyry Project is one of the world’s best undeveloped porphyry copper / gold / molybdenum projects with contained metal value approaching US$ 100 Billion. The JORC Resource calculated by H & S Conultants from Australian and the “upper high grade zone” of the JORC Resource will be basis of initial development. Staged Approach to the development reduces risk and lowers initial capital requirements (subject to all technical, economic, permitting results):

Referring to current Indonesian Mining Laws, only Copper Cathode (LME grade product) can be exported, hence the Company are given with couple of options permitted under the respective prevailing mining laws to process and export the produced mineral, the first is to produce cathode internally on site or to produce concentrate on site that is smelted or refined within the Republic of Indonesia. 
In this case we are looking for future cooperation with PT Gresik Smelting (the only Copper Smelter in Indonesia) or to channel our cooperation with potentially new establish smelter developments (which will be jointly made by Freeport and PT Aneka Tambang).
Copper concentrate produces gain approximately 90% of the “refined product value” of LME grade copper.

Shareholder Structure




Corporate Governance

The Company adheres to the principles of Good Corporate Governance pursuant to all prevailing laws and regulations, as well as the Company’s Articles of Association. This includes the presence and roles of the Independent Commissioner, Independent Director, and Committees under the Board of Commissioners, the Corporate Secretary and the Internal Audit Unit.

The following describes in brief the different committees, the Internal Audit Unit and the Corporate Secretary


The Company has established the Audit Committee pursuant to the relevant regulation and clauses set forth in the Company’s Articles of Association. The Audit Committee carries out its duties and responsibilities in accordance with the Audit Committee Charter. Based on the Decision Letter of the Board of Commissioners of 30 January 2015, the composition of the Company’s Audit Committee is as follows:

Chair :

Richard Bruce Ness (concurrently serving as the Independent Commissioner).

Member :

Aria Kanaka, CA, CPA

Indonesian national, 40, appointed as a member of the Audit Committee on 30 January 2015.  He is a certified public accountant with extensive professional experience and expertise in accounting and auditing, having served with the Public Accounting Firm of Prasetio, Utomo & Co. prior to founding his own accounting firm,
Aria Kanaka & Rekan (a member firm of Mazars SCRL). He graduated with a degree in Economics from the University of Indonesia.

Member :

Ignatius Andy, S.H.

Indonesian national, 44, appointed as a member of the Company’s Audit Committee on 30 January 2015. He brings to the Committee his legal expertise, having worked as an Attorney at Law with the law firms of Makarim and Taira and Hadiputranto, Hadinoto & Partners, prior to founding Ignatius Andy Law Firm.

He graduated with a Law degree from Universitas Parahyangan, Bandung, in 1992.













The Company has also established the Nomination and Remuneration Committee that is responsible for assisting the Board of Commissioners in determining the nomination and remuneration for Board members and senior executives of the Company. Based on the Decision Letter of the Board of Commissioners of 30 January 2015, the composition of the Company’s Nomination and Remuneration Committee is as follows: 

Chair        :                                

Richard Bruce Ness (also the Independent Commissioner)

Member    :

Edwin Soeryadjaya (also the Vice President Commissioner)

Anggota   :

Garibaldi Thohir (also a Commissioner)



The Company has formed the Internal Audit Unit pursuant to prevailing regulations and as part of good corporate governance. In accordance with Internal Audit Charter, the Unit is responsible for formulating the Company’s annual audit plan, executing such a plan under the supervision of the Audit Committee, and make recommendations for changes and improvements on the Company’s management, based on the audit findings. Based on the Decision Letter of the Board of Directors of 30 January 2015, Drs. Kumari, Ak. was appointed as Head of the Internal Audit Unit.


The Company has Muhammad Baskoro as the Corporate Secretary of the Company based on the Decision Letter of the Board of Directors of 13 June 2017.

The Corporate Secretary keeps abreast of developments in the capital market and ensures that the Company complies with all laws and regulations relevant to its operations. The Corporate Secretary also acts as a liaison between the Company and the capital market authorities, and diseminate pertinent information about the Company to stakeholders in a timely manner.