Bumi Suksesindo, PLN sign amendment to power contract

IDX-listed gold mining firm Merdeka Gold announced on Friday that its subsidiary PT Bumi Suksesindo (BSI) has signed an amendment to its contract with public utility PT Persuahaan Listrik Negara (Persero) (PLN) for the supply of power to BSI?s gold mine in Banyuwangi regency, East Java province.

Under the new contract, PLN will raise the voltage of its power supply from 345 kVA to 8,660 kVA.

PLN will provide a premium service for BSI. In return, BSI will pay PLN Rp 47 billion for the power and installment of supporting facilities. The payment will be made in installment.

BSI holds permit for the Bukit Tujuh concession. According to 2012 JORC, the Bukit Tujuh mine holds ore reserves of 90 million tons in its oxide layer. The project is expected to produce 90,000 ounces of gold and 300,000 oz of silver per year from late 2016 to 2025.

Editing by Johannes Simbolon