Pani Gold Project Starts to Shine
The Pani Gold Project stepped on the gas earlier this year. This project will grow other industries in Pohuwato and provide many job opportunities for local residents.
Dozens of young people in black and white uniforms lined the courtyard. In front of them stood a man in a blue and yellow uniform giving directions, occasionally loudly calling names or asking them to do something. Not far from them, a number of personnel in blue and yellow uniforms were seen going in and out of the office. Some seemed to be in such a hurry that they got into double-cabin cars and left the office.
This scene is commonly seen at the representative office of Puncak Emas Tani Sejahtera (PETS) in Marisa, the capital of Pohuwato Regency, in recent days. This scene was different from the previous months when the office looked quiet, the courtyard deserted, while the iron fence measuring two by four meters was mostly closed.
Those days PETS needed about 150 new employees whose recruitment would prioritize local residents. The reason is the good news that recently gave new breath to the Pani Gold Project.
PETS is a company formed by Merdeka Copper Gold with KUD Dharma Tani (whose members were originally traditional miners) to work on the Pani Besar Project in Hulawa Village, Buntulia District, Pohuwato Regency, Gorontalo Province. The project site is about 29 km from Marisa, and a four-hour road trip from Gorontalo City, the capital city of Gorontalo Province. PETS is the holder of a Production Operation Mining Business Permit (IUP) in accordance with Gorontalo Governor Decree Number 351/17/IX/2015.
Even though they had been standing for a while, PETS couldn’t move quickly because there were serious obstacles. At the location side by side, there is the Pani Project Contract of Work (KK Pani) owned by Gorontalo Sejahtera Mining (GSM) whose shares are owned, among others, by J Resources Nusantara (JRN), a subsidiary of J Resources Asia Pacific (PSAB).
Initially, there was an agreement between PETS and GSM in the cultivation of Pani IUP and Pani KK in the bordering area for mutual benefit. Exploration of gold deposits in the GSM area has been carried out since 2011 and ended in 2018. Meanwhile, in the PETS area, exploration drilling was carried out in 2012 and 2013. For the border area between the GSM and PETS deposit areas, there has been no drilling at all. However, Merdeka believes that rock mineralization continues in the intermediate area. In other words, there was a sizeable gold reserve there. Unfortunately, over the last few years, the PETS and GSM deals are way in place.
After going through a series of attempts to reach an agreement, the situation changed. At the end of 2021, PSAB sold all shares owned by its subsidiary, JRN, in GSM to Andalan Bersama Investama (ABI). The total transaction value is IDR 2.13 trillion, equivalent to 150 million US dollars. This sale is important because Merdeka has invested US$ 80.16 million for a 50.1% stake in ABI in the near future.
With the investment in ABI, Merdeka will acquire a majority stake in the Pani Gold Project through a 66.7% stake in Pani Bersama Jaya (PBJ) and 50.1% in GSM. PBJ is the parent of PETS and Pani Bersama Tambang (PBT).
Subsequently, the Pani IUP and Pani KK will be merged into the Pani Gold Project. The potential overall resource reserves for the Pani Gold Project will be greater than the potential reserves if the project were developed separately. The merger of the two projects is expected to optimize the development of the combined resource, which will provide significant economic benefits with ore being processed through one larger process plant.
“The merger of the Pani IUP and Pani KK into a larger Pani Gold Project will allow Merdeka to optimally utilize the resources of Mount Pani,” said Albert Saputro, President Director of Merdeka. According to Albert, currently the only mineral resource content in Pani is gold. If there is copper and other mineral content, it is secondary. “Pani is going to be huge,” continued Albert. “The Pani Gold Project is expected to produce 250,000 ounces of gold per year for 15 years.” In other words, this project will be the largest primary gold mine in Asia Pacific. That’s why the Pani Gold Project is very meaningful to encourage the growth and sustainability of Merdeka.
Simon Milroy, Vice President Director and CEO of Merdeka, expressed similar optimism. “With the Pani Gold Project under the control of Merdeka, we plan to accelerate the development of the project. This project will be a long-lived and low-cost gold mine,” said Milroy. He did not hide his admiration when he saw firsthand all the facilities that exceeded his expectations at the Pani Base Camp and Pioneer Camp at the GSM site and Baganite Camp at the site. He also took the time to inspect the area for mining support facilities, such as the ore processing plant, and the Bubulan Port in Paguat District, which will become an alternative logistics and material delivery point for companies other than Gorontalo City Port. “I will try to visit often so that I can follow the stages of project development, from inception to operation in the future,” said Milroy.
While visiting Pani on different occasions, Albert Saputro had the opportunity to explain Merdeka’s business and its prospects to the employees there. According to him, Pani will operate for a long time, from 20 to 30 years. Therefore, he invites all involved in the project to guard it so that it can be a blessing for all stakeholders, not only shareholders. He said that currently there are still some legal and administrative matters related to the acquisition of ABI and GSM. After that, there will be a cooperation agreement between GSM and PBJ because after all they are separate entities. “There are many clauses that need to be mutually agreed so that the business going forward can run smoothly,” said Albert.
Second, re-drilling with a closer distance for the PETS deposit area because the previous drilling was still considered inadequate and was carried out about 10 years ago; This step is also expected to increase the certainty of the number of reserves and most likely also about the increase in the number of reserves. “We will do our best to get the data as accurate as possible, and plan as carefully and comprehensively as possible,” said Albert.
Third, prepare a report on the estimation of mineral resources based on the results of exploration drilling in the border area and the PETS IUP.
Fourth, start preparations to carry out the mining process from the GSM deposit area, which already exists in very adequate numbers for exploration drilling and various studies (metallurgy, geotechnical, hydrology, environment, mining methods, etc.), as well as a detailed and complete feasibility study on 2013 and 2019. It is true that some further studies and permit adjustments are needed before construction activities can be carried out and the Pani Gold Project can start operating in 2025.
Fifth, in line with the results of further exploration in the mining expansion area to the deposit area at the border and PETS.
From an economic perspective, BSI’s contribution to taxes in Banyuwangi is very large, reaching more than 60 percent. In Tujuh Bukit, more than 34.9 hectares of land have been reclaimed which has been mined. In Banyuwangi, safe methods with high standards are also carried out to extract precious metals that do not leave process waste.
“We protect the environment and support the economic, social, and cultural progress of the communities in every area of our operations. That is also what Merdeka will do at the Pani Gold Project. If the Pani gold mine starts operating, Pohuwato’s revenue will increase significantly, and the economy will grow even faster,” said Albert.
The initial activity of the Pani Gold Project which will soon be carried out is drilling to obtain data on additional ore reserves. No less than 200 points will be drilled in 2022. The Gold Pani Project has planned to recruit around 250 new employees, bringing the total number of people working there to 300. Of this number, it is expected that the majority will come from residents.
Merdeka is also committed to educating the best sons and daughters of Gorontalo so that in the future they can occupy technical positions which at the beginning of the activity were still held by workers from other regions.
Regarding employment, the Director of HR Merdeka Titien Supeno emphasized the importance of employees who are currently working or who will be recruited later to apply GREATNESS values into their daily behavior. “Growth can only be achieved if we respect each other, work responsibly, create superior results, put safety above all else,” he said. Titien also invites all employees to make their work a masterpiece, not just a craft.
With the increase in company activity, the need for goods and services in the local market will also increase. The significant increase in spending will increase the velocity of money which in turn will boost the multiplier effect of the company’s existence. The existence of the Pani Gold Project will grow other industries in the Pohuwato area. The growth of these industries will of course provide opportunities for the absorption of new workers.
