PT Indika Energy Tbk (INDY), an entity affiliated with entrepreneur Arsjad Rasjid, is intensifying operations at its Awak Mas gold mine. This strategic move positions the gold mine as a pivotal component of the company’s expanding non-coal business portfolio. Concurrently, Indika Energy is nearing completion on the construction of a state-of-the-art gold purification smelter, representing a significant investment of US$426 million, equivalent to approximately IDR 7.09 trillion.
Indika Energy Director Johanes Ispurnawan affirmed that the Awak Mas gold mine project is progressing precisely as planned. He detailed that trial production is slated to commence in the fourth quarter of 2026, with full operational capacity expected to be achieved by 2027. “By 2027, everything should be running according to our schedule, and it will certainly begin to generate revenue,” Ispurnawan stated during Indika Energy’s public exposé in Jakarta on Thursday, November 27.
Retina Rosabai, another Director at Indika Energy, clarified that through its business entity, PT Masmindo Dwi Area, the company currently holds permits to manage three distinct pit areas: Awak Mas, Tarra, and Salu Bulo. All these mining locations are strategically situated within Luwu Regency, South Sulawesi. The total concession area spans an impressive 14,390 hectares, with approximately 1,444 hectares – roughly 10% of the entire concession – earmarked for immediate development. Indika Energy holds a Contract of Work (CoW) valid until 2050, with the potential for extension into an IUPK (Special Mining Business Permit) until 2070, ensuring long-term operational stability.
Currently, the Awak Mas project is firmly in its construction phase, with the initial trial production of gold targeted for December 2026. The mining activities will predominantly employ the efficient open pit method, while gold processing will utilize the advanced carbon in leach (CIL) technique. This combination is designed to maximize extraction efficiency and output.
From a resource perspective, the Awak Mas gold mine boasts substantial potential, with estimated resources of 2.55 million ounces and proven reserves of 1.51 million ounces. The company anticipates an annual production target of 100,000 ounces, with an average gold grade of approximately 1.37 grams per ton. Financial projections for the Awak Mas pit area estimate a pre-royalty cash cost of around US$1,150 per ounce, complemented by a sustaining capital cost in the vicinity of US$50 per ounce. Furthermore, under the royalty scheme stipulated in Government Regulation No. 19/2025, should gold prices exceed US$3,000 per ounce, the royalty rate is set to reach its highest level at 16%.
Preparing the Gold Purification Smelter
Indika Energy CEO Azis Armand confirmed that the company is actively constructing a dedicated gold purification smelter. The investment for this crucial smelter project, as calculated in 2022, amounts to US$426 million, or IDR 7.09 trillion. “This is not merely a plan; we are actively building the smelter,” Armand emphasized, underscoring the project’s advanced stage. He also highlighted Indika Energy’s proactive engagement with several contractors for the development of the processing plant, with all processes conducted in close collaboration with the company. Armand expressed optimism regarding the project’s rapid progress, noting a significant acceleration in development over recent months.
Summary
PT Indika Energy Tbk (INDY) is intensifying operations at its Awak Mas gold mine, a strategic move to expand its non-coal business portfolio. Trial gold production is scheduled to commence in the fourth quarter of 2026, with full operational capacity and revenue generation expected by 2027. The company is concurrently constructing a gold purification smelter, representing a substantial investment of US$426 million.
The Awak Mas gold project, situated in Luwu Regency, South Sulawesi, holds estimated resources of 2.55 million ounces and proven reserves of 1.51 million ounces. Indika Energy aims for an annual production target of 100,000 ounces, utilizing an open pit mining method and the carbon in leach technique for processing. The company possesses long-term operational permits for the concession areas, which span 14,390 hectares.
