Merdeka Gold Resources (MGR) has initiated mining operations at the Pani Gold Mine in the Gorontalo Province of Indonesia.
The mining operations began with overburden stripping and the extraction of initial ore.
This announcement follows MGR's recent listing on the Indonesia Stock Exchange.
MGR raised Rp4.66tn ($276m) via an initial public offering (IPO) to support the mine development.
The mine, managed by various MGR subsidiaries responsible for mining operations, processing facilities and supporting infrastructure, is planned as an open-pit mine to be developed in stages.
It contains more than seven million ounces (oz) of gold.
Initially, the company will employ heap leach processing, targeting annual production of around 140,000oz of gold from seven million tonnes of ore.
The subsequent phase will see the construction of a carbon-in-leach (CIL) processing facility.
The CIL facility will have an initial processing capacity of 7.5 million tonnes per annum (mtpa) of ore, with plans to expand to 12mtpa by 2030.
Once both facilities are running at complete capacity, the combined heap leach and CIL processes will handle 19mtpa of ore, with a maximum annual production potential of up to 500,000oz of gold.
The first gold production from the heap leach is expected in the first quarter of 2026.
MGR said the mine development would support the local economy in Pohuwato Regency and Gorontalo Province in the long term.
MGR president director Boyke Abidin said: “First mining is an important milestone for MGR, its shareholders and all stakeholders.
“It marks the start of mining activities, which will soon be followed by heap leach processing, gold recovery and first production.
“We are committed to operating responsibly, adhering to good mining practices and high environmental, social and governance (ESG) standards, so that the benefits can be sustained over time.”
MGR's involvement in the Pani Gold Mine began when Merdeka Copper Gold, its parent company, acquired a 66.6% interest in the project for $55m (Rp915.24bn) in 2018.
