PT Bukit Suksesindo (BSI) plans to start production at the Tujuh Bukit Gold Project in East Java, Indonesia, by January 2017. Construction progress at the site has reached 80%.
PT BSI director Arif F Djaafara said in late August that although the start of production was unchanged, there could be delays due to climatic conditions.
The mine has an annual production target of 90,000-100,000 ounces of gold and 300,000 ounces of silver with an estimated mine life of 10 years. The target is based on gold reserve of 1.05 million ounces and silver of 24.12 million ounces. Resources estimation is 1.83 million ounces for gold and 60.67 million ounces for silver.
BSI is conducting exploration in the area in a bid to prolong the mine life. Much of the available 992.87 hectares is largely unexplored. Arif F Djaafara said, “The site we are using at the moment is 300 hectares. We will see where it is economical and feasible to mine.”
He said that around 10 hectares had been given to local miners for traditional mining activities. Due to its proximity to the settlements and tourism sites, the area had been encroached by illegal miners.
There were concerns regarding the environmental impact cause by the illegal mining activities, however it served as a compromise to avoid conflicts with locals.
“After the reserves have been depleted, we hope they will eventually leave the area,” he said.
PT BSI is a subsidiary of PT Merdeka Copper Gold. Merdeka 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 BSI, which holds the Mining Operating Permit for Production dated July 9, 2012 and PT Damai Sukesindo (DSI), which holds the Mining Operating Permit for Exploration dated December 10, 2012.
The Tujuh Bukit project is in the Banyuwangi Regency, East Java, about 205km southeast of Surabaya.