BRMS Clarifies Palu Gold Mine Sealing Issue, Says CPM Operations Unaffected
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JAKARTA, Investortrust.id — Jakarta listed gold miner PT Bumi Resources Minerals Tbk or BRMS on Monday, Feb 16, 2026 clarified reports about the sealing of part of its gold mining concession in Palu, saying operations at its River Reef site remain normal as government action targeted illegal land clearing. The company said the clarification aimed to prevent misunderstanding among investors regarding the operational status of its subsidiary PT Citra Palu Minerals.
In a written statement, BRMS said the sealing was carried out by the government’s Forest Area Enforcement Task Force at a single location where unauthorized land clearing by illegal miners was discovered. The affected area lies within CPM’s contract of work in Palu, Central Sulawesi, but has never been mined or operated by CPM.
BRMS emphasized that its main River Reef gold mine in Poboya, operated by CPM using open pit mining methods, continues to function normally. The company said there has been no disruption to ongoing gold production activities at the site.
The clarification came after media reports used terminology that management considered potentially misleading. BRMS said it sought to ensure that market participants understood the distinction between enforcement against illegal activities and the company’s licensed operations.
On the development front, CPM is upgrading one of its gold processing plants from 500 tons of ore per day to 2,000 tons per day, with completion targeted for October 2026. Management expects the expanded capacity to contribute significantly to higher gold output in 2026.
CPM is also preparing to develop an underground mine scheduled to begin operations in the second half of 2027. The underground deposit is estimated to contain gold grades ranging from 3.5 to 4.9 grams per ton, potentially supporting further production growth into 2027 and 2028.
BRMS said it remains committed to regulatory compliance and transparent disclosure. The company added that it would continue to provide accurate updates to the public and investment community as projects progress.