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Merdeka Copper halts gold production after incident

The company discovered fractures on the surface of its heap leach pad, a segment used for metal extraction and processing, on Saturday morning. By noon, ore stored in front of the pad had subsided and caused damage to pipes and pumps. No casualties were recorded.

Yunindita Prasidya (The Jakarta Post)
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Jakarta
Sat, September 19, 2020

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M

ining company PT Merdeka Copper Gold halted gold production at its Tujuh Bukit Project site in Banyuwangi in East Java, following an incident that caused damage to pipes and pumps, the company's top executive has said.

Merdeka Copper Gold president director Tri Boewono reported that the company had discovered fractures on the surface of its heap leach pad, a segment used for metal extraction and processing, on Saturday morning. By noon, ore stored in front of the pad had subsided and caused damage to pipes and pumps. No casualties were recorded. 

“What we can say now is that there are no gold losses, but for so long as the restoration process is still in motion, this incident will affect the production and cash flow of the respective mining site from what has been projected before,” Tri said during a virtual public exposé on Tuesday.

“The company will make a further announcement in regard to the incident after the study on the impact on production and cash flow has been concluded,” Tri added.

He said he was not able to provide the cost of the incident at the moment as restoration plans to minimize the impact were still being drafted. Currently, irrigation work in the area has been temporarily closed down. 

The Tujuh Bukit Project is a gold and silver mining project in which Merdeka owns a 99.89 percent stake through its subsidiary companies, PT Bumi Suksesindo (BSI) and PT Damai Suksesindo (DSI).

BSI, which is in charge of gold ore mining, produced 223,042 ounces of gold and 409,492 ounces of silver in 2019, up from a production of 167,506 ounces of gold and 140,594 ounces of silver in 2018.

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