Asiamet Resources has received a key environmental permit for its BKM copper project in Indonesia’s Central Kalimantan province.
Asiamet Resources (LSE:ARS) has been issued a key environmental permit from Indonesian government officials for its BKM copper project in the country’s Central Kalimantan province.
Bestowed on Asiamet by the provincial government, the permit gives the company permission to develop BKM’s mine and infrastructure, including supporting activities, through to the end of operations. This entails activities that fall under pre-construction, construction, operations and post-operations.
Asiamet CEO Peter Bird commented on the timeline for receiving the environmental permit in a statement, calling it another significant permitting milestone for the company.
“Following completion of the BKM feasibility study, Asiamet continues to focus on assessing each of the value enhancement opportunities identified in the bankable feasibility study, further de-risking the BKM project through completion of the remaining permitting milestones, and advancing a range of funding options for ongoing development of both the BKM project and the company’s high quality copper, gold and polymetallic base metals project portfolio,” he said.
Going forward, the company’s next major milestone will be to receive its Pinjam Pakai, also known as a “borrow and use” permit. This would be granted by the Government of Indonesia Forestry Department; work to secure the necessary sub-permits for the Pinjam Pakai is currently underway.
A feasibility study for BKM released last month lays out a nine year mine life with an annual production estimate of 25,000 tonnes of copper cathode. Proved and probable ore reserves are set at 51.5 million tonnes at 0.6 percent copper for 303,000 tonnes of contained copper.
Total measured, indicated and inferred resources came to 69.6 million tonnes at 0.6 percent copper for 451,900 tonnes of contained copper. Life of mine revenue is docketed at US$1.27 billion, with earnings before interest, tax, depreciation and amortization ringing up at US$563.3 million.
The study notes that exploration targets close to the proposed BKM mine site could potentially expand its mineral inventory and extend the project’s mine life past 2030.
Asiamet’s share price closed 2.82 percent higher on the London Stock Exchange on Wednesday, ending the day of trading at 4.55 pence.
As of Tuesday (July 16), copper was trading at US$5,958 per tonne on the London Metal Exchange.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.