Asiamet Resources Limited Share News (ARS)

(Sharecast News) - Asiamet Resources updated the market on the potential power solution for the BKM copper project in Central Kalimantan, Indonesia on Thursday.

The AIM-traded firm said that, after executing a memorandum of understanding with the Indonesian State Electricity Company (PLN) in September, PLN had undertaken a powerline route survey and site visit to evaluate the viability of installing a new transmission line to provide grid power to the site.

Senior representatives of PLN had indicated a "high level of support" for the development of the new line, and the additional power consumption it would deliver to Central Kalimantan due to there being an excess of power available in the province.

The outcome of the work with PLN would be the delivery of the preferred technical solution and commercial consideration for grid power supply to the BKM copper project.

Asiamet said the currently-envisaged plan would be to install a transmission line from a new substation at Kuala Kurun, around 80 line kilometres from the BKM site, and would include the installation of a substation at the mine.

Given the implications of recent cost increases for hydrocarbon fuels, establishing a connection to the grid would provide access to "reliable, low-cost power".

That, the company said, would improve the project economics, reduce long-haul transportation of fuel from ports to site, and allow for the "possible provision" of power to local communities currently without grid power.

The results of the work would be incorporated into the 2022 feasibility study update.

"Having PLN complete the transmission line survey and site visit is an important milestone for the BKM copper project," said chief executive officer Darryn McClelland.

"The connection of the site to grid power has the potential to materially change the economics of the project and becomes an enabler for future development of the KSK contract of work.

"The company will continue to work closely with all parties to deliver a solution for reliable, low cost power for BKM copper."

McClelland said ongoing work to enable the solution was being advanced jointly with PLN and others, with the firm to provide regular updates on those activities.

"It is expected work on power supply will be advanced to the required degree of confidence for inclusion in the feasibility study update with ongoing requirements taken through into the detailed design phase of the project.

"As major work streams conclude we will continue to provide further updates on the feasibility study."

At 1628 BST, shares in Asiamet Resources were up 2.7% at 0.95p.

Reporting by Josh White at Sharecast.com.