Jakarta. Mining giant Merdeka Copper Gold, also known by its ticker symbol MDKA, is set to reap the benefits of rising prices of gold, copper, and nickel.

Geopolitical uncertainty, among others, had caused the price of gold to reach an all-time high of US$2,450 per troy ounce in mid-May 2024. Amid the uncertainty of inflation, gold remains a favorite of the general public and especially investors, thus providing new opportunities for MDKA to strengthen its position in the market.

Copper and nickel prices are also growing significantly. The price of copper, a mainstay in the manufacturing and construction industry, rose to $9,900 per metric ton in April, which provided an additional boost for Merdeka, which has high-quality copper mines in its portfolio. This drives income from the sale of copper cathodes, which are produced at the Wetar Copper Mine operated by PT Batutua Kharisma Permai and PT Batutua Tembaga Raya.

The growing demand for nickel in the battery and electronics industries has pushed prices of the silvery white metal to a record of $19,300 in April.

This increase shows bright prospects for Merdeka Battery Materials (IDX: MBMA), a subsidiary of MDKA. The nickel produced by MBMA comes from the SCM Nickel Mine which is a global scale, high quality and low cost mining operation located in a 21,100 hectare concession area with a multi-decade mine life.

By optimizing gold, copper and nickel production, as well as increasing production efficiency, Merdeka seeks to maximize revenue potential in the face of these favorable market conditions. The future of the Merdeka Group is quite bright with this price increase, in line with its strategy for the next few years which will enter a transformation period by operating long-lived mines and developing world-class mineral resources.

Merdeka is currently also developing 2 future strategic projects, namely the Pani Gold Project in the Gorontalo province and the Tujuh Bukit Copper Project which is under the Tujuh Bukit Gold Mine Operation in Banyuwangi, East Java. 

The Pani Gold Project will be one of the largest primary gold mines in Indonesia. It boasts 6.9 million troy ounces of gold. The Tujuh Bukit Copper Project is one of the world’s largest of its kind, although it is still in the pre-production phase. The project holds a total mineral resource content of 8.2 million tons of copper and 27.9 million ounces of gold. At peak production, the Tujuh Bukit Copper Project will process 24 million tonnes of ore per year to produce more than 110,000 tonnes of copper and 350,000 ounces of gold per year for more than 30 years.

Merdeka Copper Gold’s general manager for corporate communications Tom Malik said the company vowed to improve its operational performance.

"By using state-of-the-art technology and paying attention to sustainable mining practices, Merdeka not only strives to achieve financial success but also to make a positive contribution to society and high environmental management standards," Tom was quoted as saying in a recent press statement.

The rising prices of gold, copper, and nickel will provide a positive impetus for the growth and profitability of the Merdeka Group. By continuing to innovate and adapt to market changes, Merdeka is ready to take strategic steps to ensure long-term success and strengthen its position as a leader in the Indonesian mining industry, according to Tom.

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