By Tri Luluk Lufiana
As 2023 winds down, UK-listed copper and polymetallic mining firm Asiamet Resources Limited has released an end-of-year update highlighting significant advancements in its BKM copper project in Indonesia's Central Kalimantan Province.
Asiamet said in a statement obtained Friday it has made substantial progress in the debt finance process for the BKM project. Positive engagement with the prospective Lead Bank's credit committee is ongoing, and a submission for acting as the lead arranger is slated for early next year. In a strategic move, Asiamet has initiated talks with a renowned Indonesian bank to further the project's financing prospects.
Offtake and prepayment financing gains momentum: Asiamet's engagement with prepayment finance providers continues robustly, with due diligence processes in full swing. The receipt of an indicative term sheet marks a significant step, and the company expects increased momentum in this area as the debt financing process progresses.
Advancements in EPC engagement: The company is in advanced negotiations with leading Indonesian and Chinese engineering, procurement, and construction firms for the next phase of the BKM copper project. Commercial proposals are under review, with further updates expected soon.
Optimization efforts at BKM project: Asiamet is finalizing reviews on alternative heap leach facility locations and open pit mine designs, which could lead to significant changes in the project's development plans.
Read also: Asiamet completes key ITE report to secure financing for copper project
Progress in project permitting: Discussions with the Ministry of Environment and Forestry are underway to finalize the terms for the shared use of the forestry access road to the BKM site. This is a crucial step towards completing the change of forestry concession for the project.
Power supply developments: The company has identified ample biomass sources for the project's power plant. The focus is now on optimizing the power station's location, considering various logistical and cost factors.
Concentrate logistics: An internal scoping study for the transport of concentrate product is being reviewed by local specialists. The potential for producing a pyrite and copper concentrate from the BKM primary resource is being actively explored.
CEO's reflections: Darryn McClelland, CEO of Asiamet, expressed gratitude to all stakeholders and shareholders, acknowledging the significant progress made in 2023 and outlining a clear path forward for 2024. The company's major shareholder, IDX-listed mining contractor PT Delta Dunia Makmur Tbk (IDX: DOID), continues to support Asiamet's vision of developing a larger energy transition metals business in Asia.
Looking ahead: As 2024 approaches, Asiamet is poised to continue its journey towards establishing the BKM copper project as a new milestone in Asia's mining landscape, reinforcing its commitment to advancing its strategic objectives in the region.
Editing by Reiner Simanjuntak
