PT Masmindo Dwi Area (MDA) fully respects the statement made by the Governor of South Sulawesi, Andi Sudirman Sulaiman, as reported by the media on July 3, 2025, regarding the request to evaluate MDA’s mining activities in Luwu Regency. As a legally established business entity operating in accordance with the laws and regulations of the Republic of Indonesia, MDA hopes that public communications from provincial government officials are aligned with the spirit of collaboration and support for strategic investments that have undergone all formal licensing processes.

MDA management asserts that all company activities are carried out under the principles of good governance, technical prudence, legal compliance, and a long-term commitment to environmental and social sustainability. The open-pit mining method applied by MDA was selected based on the geological characteristics of the primary gold deposits in the Latimojong Mountains. Technically and geologically, open-pit mining is the safest and most effective method for shallow, widespread deposits, and allows better monitoring of occupational safety and environmental management.

This conclusion is also supported by R. Le Roux et al. (2025) in the Mining journal, which stated:

“Open-pit mining remains the most feasible approach for near-surface mineral deposits, with manageable risks through proper slope design planning and geotechnical monitoring systems.”

MDA operates based on an Environmental Impact Assessment (AMDAL) that was comprehensively prepared and approved by the Provincial Government of South Sulawesi in 2019, in accordance with Law No. 32 of 2009 on Environmental Protection and Management and Government Regulation No. 22 of 2021.

Regarding Regional-Owned Enterprises (Perseroda), MDA appreciates the Governor’s attention to enhancing the role of such entities in strategic sectors like mining. However, as stipulated in Law No. 3 of 2020 on Mineral and Coal Mining (Articles 35–38), Government Regulation No. 54 of 2017 on Regional-Owned Enterprises, and Ministry of Energy and Mineral Resources Regulation No. 1827K/30/MEM/2018 on Good Mining Practices, partnerships in mining activities can only be undertaken by entities with sufficient legal, technical, and financial capacity. This includes holding a Mining Services Business License (IUJP), certified personnel, HSE management systems, and tested risk management structures.

In this regard, MDA signed a strategic memorandum of understanding with Perseroda Sulsel in May 2025, focusing on supervisory functions. In practice, this serves as a capacity-building opportunity for the Provincial Perseroda in enhancing technical competencies and investment opportunities based on industry standards. In the future, collaboration between Provincial and Regency-level Perseroda is expected to evolve from supervisory roles into more substantive operational functions within the Awak Mas Project framework.

Commitment to Environmental Rehabilitation and Revegetation

Post-mining revegetation is a vital part of MDA's sustainability strategy. Since the construction phase, the company has implemented a progressive rehabilitation approach, conducting reclamation and revegetation in parallel with mining operations.

MDA’s revegetation program includes planting endemic tree species, natural erosion control, eco-friendly drainage systems, and preparing post-mining areas for conservation and social use. According to Zine et al. (2023) in the Mining journal, ecological reclamation as part of mine closure stimulates soil formation, enhances biological activity, and builds a balanced ecosystem using biophysical methods and native vegetation—demonstrating the potential for ecosystem recovery within 5–10 years post-mining.

All of these efforts are part of the Mine Closure and Reclamation Plan, approved by the Ministry of Energy and Mineral Resources and backed by a reclamation guarantee provided by the company since the beginning of construction.

Erlangga Gaffar, MDA’s Director of Legal and Corporate Services, stated:

“We appreciate Governor Sudirman’s concern and caution regarding mining activities in the province, including our operations in Awak Mas. However, we must emphasize that MDA operates under good mining practices and implements continuous environmental monitoring to ensure ecological recovery is carried out in a planned and responsible manner. We believe that transparency, regulatory compliance, and capacity-building partnerships are key to building a mining industry that is not only legal but also delivers tangible benefits to the community and region.”

PT Masmindo Dwi Area reaffirms its openness to engage in dialogue and collaboration with all stakeholders, including the Provincial Government of South Sulawesi and the Luwu Regency Government, to ensure that mining activities deliver optimal benefits for society, the environment, and regional development.