Emulsion Plant Inauguration in BSI-Tujuh Bukit Gold Mine

PT DNX Indonesia officially starts the operation of its emulsion plant at BSI-Tujuh Bukit gold mine in East Java Province. Tujuh Bukit gold mine is operated by PT Bumi Suksesindo, a subsidiary company of IDX-listed PT Merdeka Copper Gold Tbk, that has been operating since 2017.

Andy Gardner, Senior Vice President, Asia Pacific of Dyno Nobel, said that DNX provides more values to BSI. "We make sure that we can produce quality emulsion on site and provide more optimized and efficient blasting services," Andy said.

DNX Indonesia provides both surface and underground blasting services for BSI under a five years contract until 2024. BSI currently operates three gold pits namely B-West, B-East and Pit A. B-West pit is going to be mined out in the near future and BSI will open new pit, which is Pit C.

Shaun Ryan, Mine Operation Manager of BSI, added that the newly operating emulsion plant of DNX will help BSI to improve the efficiency and reduce the production cost in the gold mine. “We estimate that we can save up to US$1 million a year,” he said. Ryan stated that DNX Indonesia provides the down-to-hole blasting services while the drilling activities are conducted by BSI.

Andy Gardner makes sure that the company will provide more efficient blasting services as it fully understands the explosive requirements in the gold mine. “We have different emulsion formulas for surface and underground blasting service. Since we understand that the underground is very reactive, so we have to use emulsion because it is safer and gives better outcome,” Gardner said.

Emulsion plant in Banyuwangi is the 8th plant of DNX Indonesia since its first operation in Indonesia for more than 25 years ago. DNX Indonesia partners with PT Multi Nitrotama Kimia (MNK) in providing blasting services for BSI.

Wawa Jaka Sungkawa, Director of MNK, said that MNK provides ammonium nitrate (AN) supply and detonators for DNX Indonesia. “We can provide AN from Cikampek plant which is relatively near from here,” Wawa said referring to Tujuh Bukit gold mine. MNK also has detonator assembly plant (JO with DYNO NOBEL) in Handil, East Kalimantan Province.

BSI owns mining permit (IUP) production operation of 4,998 hectare but the borrow and use forest area permit (IPPKH) is currently only 993 hectares. There are some other prospect areas outside Tujuh Bukit gold mine but BSI only operates inside the 993 hectare area of Tujuh Bukit prospect.

“There are some prospects among others Tujuh Bukit, Salakan and Candrian but currently we are working on Tujuh Bukit,” Hidayat Purwoko, Tech Service Manager of BSI, said.

Merdeka Copper Gold plans Oxide Expansion Project (OXP) to double installed capacity for ore crushing, stacking and processing from 4 million to 8 million tons per annum.

Gardner mentioned that DNX already put a huge investment in the facility and design the emulsion plant for long term operation. “If we could do a good job, work safely and efficiently, we hope to be here for longer term,” he said.

BSI currently has underground exploration that is going through to find more gold ore resources. “There is potential to be 30 years life-of-mine. If that is successful, we will be happy if DNX to remain here during the journey,” Ryan said. 

Report by Tri Subkhi - Petromindo

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Ashleigh Kinder

Senior Marketing and Communications Advisor

0436128078

ashleigh.kinder@ap.dynonobel.com