By Romel S. Gurky
PT Merdeka Gold Resources (MGR), a subsidiary of PT Merdeka Copper Gold Tbk (IDX: MDKA), is seeking to raise as much as Rp4.88 trillion (approximately US$312 million) through an initial public offering (IPO) on the Indonesia Stock Exchange, as it accelerates development of one of the country's largest gold mining projects.
MGR announced on Monday it plans to issue up to 1.62 billion new shares, or 10 percent of its enlarged capital, at a price range of Rp1,800 to Rp3,020 per share. The bookbuilding period will run from September 8 to 10, followed by a public offering from September 17 to 19. The shares are scheduled to be listed on the IDX on September 23, 2025.
The IPO proceeds will be used to fund the development of the Pani Gold Project in Gorontalo, which MGR claims will become one of the largest primary gold mines in Indonesia and the broader Asia-Pacific region. The mine is estimated to contain more than 7 million ounces of gold and is designed for multi-decade operations.
The project is located in the historic gold-producing area of Gunung Pani, Pohuwato Regency. In its first phase, MGR will operate a heap leach facility with 7 million tons per year of processing capacity, targeting annual production of around 140,000 ounces of gold.
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In the second phase, the company plans to build a carbon-in-leach (CIL) plant with an initial capacity of 7.5 million tons per year, expanding to 12 million tons by 2030. Combined with the heap leach facility, total capacity will reach 19 million tons per year, with peak gold output expected to hit 500,000 ounces annually by 2033.
Commercial production is expected to begin in early 2026, following the first gold pour targeted for the end of 2025.
The offering is underwritten on a full commitment basis by Trimegah Sekuritas Indonesia, Sinarmas Sekuritas, and Indo Premier Sekuritas. Investors can place orders through Indonesia’s e-IPO platform, with share allocations subject to available funds in investor sub-securities accounts.
MGR, originally established in 2015 under the name PT Pani Bersama Jaya, has transformed into a vertically integrated gold mining holding company managing exploration, mining, processing, and supporting infrastructure through several subsidiaries.
MGR's parent, PT Merdeka Copper Gold, is known for operating the Tujuh Bukit Gold Mine in East Java and has a track record in developing large-scale mining projects in Indonesia.
Editing by Reiner Simanjuntak
