ARCI Expands Processing Plant Capacity by 50%, Opens New Underground Mine
Wed 13 May 2026, 08:46 AM
Share
PT Archi Indonesia Tbk (ARCI) is positioning itself to boost gold production by 2028 through an expansion of its processing plant capacity and the development of a new underground mine in North Sulawesi.
In 2026, the company will increase the capacity of its processing plant by 50%, from 4 million tonnes per annum (Mtpa) to 6 Mtpa.
In addition, ARCI will begin developing the Marawuwung underground mine within its Toka Tindung mining area, operated by its subsidiary, PT Meares Soputan Mining (MSM).
"We expect these two strategic projects to significantly increase the company's production starting in 2028 and beyond," said ARCI President Director Rudy Suhendra, as quoted from the company's 2026 Public Expose on Tuesday (May 12).
Meanwhile, in 2026, ARCI is targeting a 15% increase in gold production compared with 2025, when output reached 122,000 ounces. This implies a 2026 production target of around 140,000 ounces.
The company's performance through the end of the first quarter of 2026 remains on track to meet that target. "Based on our Q1 2026 performance versus Q1 2025, our production increased by 40%," Rudy said.
Supported by its operational targets, ARCI is aiming to double its net profit in 2026, assuming global gold prices remain stable at UD $4,700–5,000 per troy ounce.
The sharp rise in global gold prices throughout 2025—up about 64%—provided a significant tailwind for gold mining companies last year.
ARCI, for instance, posted a net profit of USD 103 million in 2025, a tenfold increase from the previous year, while its margin surged from 4% to 21%.
However, ARCI stressed that the strong performance was not solely driven by higher gold prices. Gold production also rose 31% year on year in 2025, while the grade of processed ore improved.
"We also successfully implemented cost-efficiency strategies and processed higher-grade gold ore, allowing our margin to increase more than the growth in production," Rudy explained.
On the other hand, ARCI's sales rose only 27.8% in 2025 despite the sharp increase in gold prices. Management said it remains optimistic about the outlook for gold prices while prioritizing stable cash flow to support sustainable production.
"PT Archi Indonesia is a mining company, not a trader," Rudy said.
However, according to Trading Economics data, spot gold had fallen to USD 4,688 per troy ounce as of Tuesday (May 12), down about 16% from its January 2026 peak of USD 5,600.
Advertisement
