Jakarta. Bakrie Group's Bumi Resources Minerals (IDX: BRMS) is making a major pivot into underground gold mining with the construction of its first such facility in Palu, Central Sulawesi. The project, underway since early 2025, is expected to begin operations in the second half of 2027, potentially tripling the company’s gold output.

“This will be a game changer for BRMS,” BRMS director Herwin Hidayat told Beritasatu.com, The Jakarta Globe's sister publication, on Monday. “Our production is set to increase two to three times once this underground mine is fully operational.”

He added that gold production from the new mine is expected to reach 4.9 grams per ton, more than triple the current average of 1.5 grams per ton from its open-pit operations.

The company has awarded the underground mining contract to MacMahon Indonesia, a subsidiary of ASX-listed Macmahon Holdings Ltd.  “This is our first underground project. We’re not taking any chances, safety comes first,” Herwin said.

BRMS currently relies on open-pit mining via its processing plant in Palu, which began operations in 2020. The underground facility has long been anticipated by investors, who see it as key to unlocking deeper reserves and higher-grade ore.

While the underground mine won’t come online until 2027, BRMS expects to boost its 2025 output to between 70,000 and 75,000 troy ounces, up from 64,000 ounces last year.

In its latest earnings, BRMS reported a 212 percent year-on-year increase in revenue to $63.3 million in the first quarter of 2025, driven by higher gold sales from its Palu-based subsidiary, Citra Palu Minerals (CPM), and a jump in gold prices. Operating profit surged 453 percent to $27.6 million, while net profit climbed 296 percent to $14.9 million. Gold sales volume more than doubled to 21,922 ounces, with the average selling price rising 35 percent to $2,809 per ounce.

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