Merdeka Gold Reports 758% Production Surge at Pani Mine

PT Merdeka Gold Resources Tbk reported a 758% surge in quarterly gold production to 15,594 ounces for the second quarter of 2026, up from 1,818 ounces in the first quarter [2]. The production increase marks a critical milestone for the company as it scales operations at its Pani Gold Mine in Gorontalo, Indonesia, to become a large-scale, long-life gold producer [2].

Scaling Heap Leach and CIL Operations

The production jump is driven by the ongoing ramp-up of the mine’s Heap Leach (HL) operations [2]. To support this growth, the company has completed construction of the first two HL cells and is currently raising embankments to increase capacity through the remainder of 2026 [2]. Construction has also commenced on a third cell, with the total facility expected to hold approximately 62 million tonnes of ore upon completion [2].

Parallel to the HL ramp-up, the company is advancing its larger Carbon-in-Leach (CIL) project, which is designed to process 12 million tonnes per annum (Mtpa) in its initial phase [2]. The plant layout includes provisions for a future expansion to 24 Mtpa, which the company claims would position the Pani site as one of the largest gold mines in the Asia-Pacific region [2]. Site preparation for the CIL facility is currently underway, with the company targeting the pouring of first concrete in early Q4 2026 [2].

Infrastructure and Development Timeline

The expansion effort relies on significant supporting infrastructure, including a tailings storage facility where embankment work is scheduled to progress into early 2027 [2]. Merdeka Gold is also coordinating with Indonesia’s state-owned electric utility, PT Perusahaan Listrik Negara, to develop the power infrastructure required to support the increased processing capacity [2].

The company maintains that all major workstreams for the 12 Mtpa CIL project remain on schedule [2]. As engineering and procurement activities continue, the focus remains on the staged expansion of the HL facility to bridge production until the CIL plant becomes operational [2].

What to watch

• Q4 2026 Milestone: Monitor for the scheduled pouring of first concrete at the CIL facility, which serves as the primary indicator for the project's construction timeline [2].
• 2027 Infrastructure Targets: Watch for updates on the tailings storage facility embankment progress, which is slated for early 2027 [2].
• Capacity Expansion: Track the completion of the third HL cell and the ongoing embankment raises for cells 1 and 2, which are essential for sustaining the current production ramp-up [2].

The company’s ability to maintain this growth trajectory depends on the successful integration of the CIL facility with existing HL operations. Whether the project can meet its long-term capacity goals will depend on the timely delivery of power and tailings infrastructure throughout the coming year.