Merdeka Gold (EMAS) Partners with China’s VGE to Build IDR 2.5 Trillion CIL Facility
Wed 26 Aug 2026, 09:19 AM
Share
PT Merdeka Gold Resources Tbk. (EMAS) subsidiary PT Pani Industri Nusantara (PIN) has signed a transaction with Chinese company Vision Green Energy (Beijing) Tech Co., Ltd. (VGE) for the supply of machinery, equipment, and consulting services for the construction of the Carbon-in-Leach (CIL) processing facility at the Pani Gold Mine, valued at around IDR 2.52 trillion.
Based on EMAS’s disclosure, the transaction is estimated at RMB 1.02 billion, or around IDR 2.52 trillion, using Bank Indonesia’s middle exchange rate as of March 31, 2026. The value is equivalent to 40.26% of EMAS’s equity based on its interim consolidated financial statements as of March 31, 2026.
“With this value, the transaction between PIN and VGE is categorized as a Material Transaction because its value exceeds 20% of the company’s equity,” EMAS management said in an information disclosure on Wednesday (Aug. 26, 2026).
Under the transaction, PIN acts as the buyer, while VGE acts as the seller. The two parties have agreed to the sale and purchase of equipment and machinery, as well as supporting consulting services to be used in the construction of the CIL processing facility.
EMAS has obtained a fairness opinion on the transaction based on Appraisal Report No. 00103/2.0118-00/BS/02/0520/1/VIII/2026 dated August 19, 2026, from KJPP Iskandar & Rekan.
The report provides a fairness opinion on the planned transaction for the supply of machinery and equipment, as well as supporting consulting services for the construction of PIN’s CIL processing facility.
In addition to the sale and purchase of equipment and machinery, the agreement also covers supporting consulting services and mechanisms for fulfilling obligations under the agreement, which under certain circumstances may be provided by PIN and/or its affiliated parties.
The transaction with VGE is part of the development of the CIL processing facility at the Pani Gold Mine by the Merdeka Gold Resources group.
The CIL facility is designed to have a processing capacity of 12 million tons per annum (Mtpa) and will complement the heap leach facility already operating at the Pani Gold Mine in Pohuwato Regency, Gorontalo.
The development of the CIL facility is one of the key stages in the expansion of the Pani Gold Mine. The facility is also designed to accommodate a potential increase in processing capacity to 24 Mtpa in the future.
Previously, EMAS said construction of the CIL facility was progressing as planned. Land preparation had been carried out, with the first concrete pour targeted for early fourth quarter of 2026.
In addition to the main facility, the company is also developing supporting infrastructure, including tailings facilities and additional power supply to support increased operating capacity at the Pani Gold Mine.
Advertisement
