Forest task force says Citra Palu gold mine overlaps protected forest areas

Indonesian Forest Area Enforcement Task Force (Satgas PKH) has asserted that parts of the mining concession held by gold miner PT Citra Palu Minerals (CPM), a subsidiary of PT Bumi Resources Minerals Tbk (IDX: BRMS), are located within protected and limited production forest zones, alleging violations of forest-use regulations.

Satgas PKH spokesperson Barita Simanjuntak said protected forests may not be used for activities other than safeguarding flora and fauna, while limited production forests are subject to strict regulatory supervision.

“Based on the Task Force’s findings during enforcement operations, the company has been managing the area illegally. This involves five locations,” Barita told Bloomberg Technoz on Wednesday (February 18, 2026).

He said the Task Force had uncovered alleged illegal mining (PETI) activities within CPM’s concession area but stressed that enforcement was not limited to unauthorized miners.

“We did not selectively act only against illegal miners. We also took action against mining areas located within protected and limited production forest zones,” Barita said, adding that the Task Force’s findings were supported by detailed imaging and land-clearing data.

According to Satgas PKH, about 26,830 hectares of CPM’s concession fall within protected forest areas, while 36,020 hectares are located in limited production forests. The affected sites are spread across five regions, including Parigi Moutong, Donggala and Toli-Toli in Central Sulawesi.

“That is why enforcement was carried out. If companies or individuals operate legally and fulfill all licensing requirements, we will protect and safeguard their business continuity,” Barita said.

BRMS management said earlier that the authorities had only sealed a site where unauthorized land clearing was allegedly carried out by illegal miners within a forest area.

The company clarified earlier this week that the sealed land forms part of the Contract of Work (CoW) managed by CPM in Palu, Central Sulawesi, but has not yet been mined or operated by the subsidiary.

Read also : BRMS denies Palu mine sealed, says operations continue

“The sealed area is part of the Contract of Work managed by PT Citra Palu Minerals in Palu, Central Sulawesi, which to date has not yet been mined or operated by CPM,” management said in a written statement.

BRMS denied reports that its Palu gold mining operations had been sealed, emphasizing that activities at the River Reef mine in Poboya continue as normal using open-pit methods.

The company is also upgrading one of CPM’s gold processing facilities from 500 tonnes per day to 2,000 tonnes per day, with completion targeted for October 2026. The expansion is expected to lift gold production next year.

In addition, CPM plans to commence underground mining operations in the second half of 2027. The underground mine is estimated to contain gold grades of 3.5 to 4.8 grams per tonne, which BRMS said would further boost output in late 2027 or early 2028.

Concession details

BRMS holds a 96.97% stake in CPM, while PT Bumi Resources Tbk (IDX: BUMI) owns 3.03% and Singapore-based Enercorp Ltd. holds 0.0001%.

CPM operates under a sixth-generation Contract of Work issued in 1997. Its production operation CoW was granted on November 14, 2017, and remains valid until December 31, 2050.

The concession spans 85,180 hectares across five blocks: Poboya, Winehi, Anggasan, Moutong and Roto.

Total mineral resources at the producing Poboya Block are estimated at 40.2 million tonnes, with an average grade of 3.5 grams per tonne of gold and 8.0 grams per tonne of silver, equivalent to 4.53 million ounces of gold and 10.28 million ounces of silver. Proven and probable reserves stand at 34.1 million tonnes, containing 3.54 million ounces of gold and 8.6 million ounces of silver.

The Poboya Block comprises two mining areas: River Reef and Hill Reef.

Editing by Reiner Simanjuntak