Pani Gold Mine Achieves First Pour as Indonesia’s New Gold Producer Emerges

The Pani Gold Mine has entered commercial production following its first gold pour on the 14th of February 2026, marking a major milestone for Indonesia’s rapidly expanding gold mining sector. The achievement came ahead of the project’s original commissioning schedule and confirms the successful transition of the operation from development into active production.

Located in Hulawa Village in Pohuwato Regency within Gorontalo Province on the island of Sulawesi, the large-scale open-pit operation is positioned to become one of Indonesia’s most significant new gold producers. The mine is operated by PT Merdeka Gold Resources Tbk, which trades on the Indonesia Stock Exchange under the ticker EMAS and forms part of the mining portfolio of PT Merdeka Copper Gold Tbk (IDX: MDKA).

With substantial ore reserves and an accelerated development schedule, the project is expected to deliver strong production growth over the coming years while providing significant economic benefits to both the Gorontalo region and Indonesia’s broader mining industry.

The Pani deposit hosts one of the largest undeveloped gold resources discovered in Indonesia in recent decades. Current estimates indicate ore reserves containing approximately 4.8 million ounces of gold, within a broader mineral resource of about 7.01 million ounces.

These figures position the project among the most prospective primary gold developments in the country and underpin a long-term production profile capable of supporting large-scale mining operations for many years.

The mine is being developed as a conventional open-pit operation, using truck-and-shovel mining methods to extract ore before processing through a staged metallurgical system designed to maximise gold recovery.

Development of the Pani Gold Mine accelerated significantly following the listing of PT Merdeka Gold Resources Tbk on the Indonesia Stock Exchange. Access to capital through the listing enabled the project to move quickly from feasibility studies into construction.

The first mining activities commenced on 1 October 2025, initiating the extraction of ore from the open-pit deposit. Within weeks, the project achieved another key milestone with the completion of the Ore Preparation Plant (OPP), which plays a critical role in crushing ore before processing.

Commissioning activities then progressed rapidly through late 2025 and early 2026. Key operational milestones included:

• First ore crushing at the OPP

• Initial ore stacking at the heap leach facility

• Commencement of irrigation to initiate the gold leaching process

During heap leaching, a solution is applied to stacked ore to dissolve gold, producing what is known as pregnant leach solution. This solution is then processed at the Adsorption, Desorption and Recovery (ADR) plant, where gold is recovered and refined into doré bullion bars.

These commissioning steps culminated in the project’s first gold pour in February 2026, officially marking the start of commercial production.

During its initial operating phase, the Pani mine is utilising heap leach processing as its primary gold recovery method. Production in the first full year of operation is expected to reach approximately 110,000 to 115,000 ounces of gold, exceeding earlier forecasts that targeted around 80,000 ounces in 2026.

The higher-than-expected production outlook reflects strong operational performance during commissioning and the successful ramp-up of heap leach operations.

As mining and processing activities continue to expand, production volumes are expected to increase significantly over the coming years.

In addition to heap leach operations, the project is advancing construction of a Carbon-in-Leach (CIL) processing facility, which will substantially increase the mine’s long-term production capacity.

Earthworks for the CIL plant began in early 2026, earlier than originally planned, demonstrating the operator’s intention to accelerate the project’s growth trajectory.

The planned facility will have a processing capacity of 12 million tonnes of ore per year and will operate alongside the existing heap leach circuit. Using two processing methods simultaneously will allow the operation to optimise recovery rates from different ore types.

Once the CIL facility is completed - now targeted for 2028 - the combined processing infrastructure is expected to significantly increase gold output.

At peak capacity, the operation could achieve annual production of up to 500,000 ounces of gold by 2029, bringing the mine into the ranks of the largest gold producers in Indonesia.

The Pani Gold Mine is expected to play a major role in supporting economic development in Gorontalo Province, a region that has historically had limited large-scale mining activity.

The project has already generated employment opportunities during construction and commissioning, and ongoing operations are expected to support further job creation while stimulating local supply chains.

Regional leaders have highlighted the mine’s potential contribution to economic growth. According to provincial officials, the expansion of the mining sector could help lift Gorontalo’s economic growth rate above six percent while also contributing to reductions in regional poverty levels.

The development also supports Indonesia’s broader objective of strengthening domestic mineral production while encouraging investment in resource development outside the country’s traditional mining centres.

With its first gold pour now completed and production ramp-up underway, the Pani Gold Mine has entered a new phase of development. The combination of strong gold prices, large ore reserves and accelerated expansion plans positions the operation to become one of Indonesia’s most important new gold mines.

As additional processing capacity comes online later in the decade, the project is expected to deliver sustained production growth while contributing to regional development and strengthening Indonesia’s position in the global gold mining industry.