Merdeka Copper Gold (MDKA) Boosts 2023 Performance

National mining company PT Merdeka Copper Gold Tbk (hereafter referred to as Merdeka) continues its efforts to enhance productivity and financial performance for the remainder of 2023. The stock-coded MDKA is optimistic about achieving better performance by year-end, with new revenue sources being developed through its subsidiaries.
One of these subsidiaries, PT Merdeka Battery Materials (MBMA), engaged in nickel mining, has successfully operated its third Rotary Kiln Electric Furnace (RKEF) smelter. It has a production capacity of approximately 21,000 to 25,000 tons of nickel pig iron (NPI) in the second half of 2023.
According to company records, the Wetar Copper Mine started delivering pyrite ore to the Acid, Iron, Metal (AIM) project since September 2023 for project commissioning preparation. The AIM project facilitates modern and integrated mining processing located at the Indonesia Morowali Industrial Park (IMIP), managed by Merdekas subsidiary, PT Merdeka Tsingshan Indonesia (MTI). The project operates a concentrator to process spent ore and high-quality pyrite ore with a nominal capacity of over 1 million tons per year.
In Sulawesi, the Sulawesi Cahaya Mineral (SCM) mine boasts significant nickel content on a 21,100-hectare concession. The SCM mine is operational and ships nickel ore to the Rotary Kiln Electric Furnace (RKEF) smelter in the Indonesia Morowali Industrial Park (IMIP).
To expedite operations, Merdeka has partnered with strategic allies for nickel processing project development. According to Kontan.co.id, MBMA recently signed a definitive agreement to establish a joint venture with GEM Co Ltd (GEM) on September 25. The joint-venture company will build a new High-Pressure Acid Leach (HPAL) processing plant within the IMIP complex, set to begin operations in late 2024.
Strong Capital Expenditure
In terms of capital expenditure, Merdeka has disbursed over USD 260 million in the first half of 2023. This includes USD 77.5 million for the construction of a haul road connecting the SCM mine to the IMIP. The road construction was completed in August 2023, and ore transportation started in mid-August 2023.
Additionally, for the development of the Tujuh Bukit Copper project, Merdeka has invested USD 24 million in standard feasibility to advance the project, including resource drilling, geological modeling, and technical studies.
In the AIM project, Merdeka injected an additional USD 58 million in the second quarter of 2023, bringing the total investment for the first half of 2023 to USD 117 million. For the Pani Gold Project, Merdeka allocated USD 43 million for the feasibility study and resource drilling.
Financially, Merdekas strength is supported by a robust cash position. As of June 2023, Merdeka recorded cash and cash equivalents, net of restricted cash, amounting to USD 496 million. Additionally, MDKA still has unused debt facilities of USD 160 million.
With this financial strength, Merdeka demonstrates its commitment to supporting long-term strategic expansion projects beneficial to the company. If executed as planned, these projects can become new sources of revenue for Merdeka in the future.
Not only focusing on enhancing productivity in various projects, but Merdeka also commits to sustainability aspects in its business operations. According to the companys 2022 Sustainability Report, Merdeka has issued a Net-Zero Commitment for Scope 1 and Scope 2 emissions by the year 2050.
In 2022, Merdeka collaborated with the local community surrounding the Tujuh Bukit Gold Mine to recycle food waste into animal feed and produce maggots for poultry feed. In the Wetar BKP-BTR Mine, the community transformed household waste into 4.56 tons of compost, generating larvae for poultry feed.
Albert Saputro, President Director of Merdeka Copper Gold, stated, We believe that our efforts to optimize our resources and explore new revenue potentials will yield positive results. We are also committed to minimizing environmental impact and making a positive contribution to the local communities where the company operates. This reflects our long-term commitment to maintaining corporate sustainability.
Image source >>> Merdeka Copper Gold Kilas Online
Source >>>https://industri.kontan.co.id/news/merdeka-copper-gold-mdka-tingkatkan-produktivitas-dan-kinerja-di-sisa-tahun-2023

Source https://djakarta-miningclub.com