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(Alliance News) - Asiamet Resources Ltd on Wednesday said its feasibility study for the Beruang Kanan Main copper project in Kalimantan, Indonesia delivered "excellent" economic outcomes.
The Indonesia-based mining company said its latest estimated ore reserves show 40.8 million tonnes at 0.7% total copper and 0.5% soluble copper.
It expects the BKM project to have an initial mine life of 9.2 years producing up to 20 kilotonnes per annum of copper cathode, with a life of mine revenue of USD1.4 billion and earnings before interest, tax, depreciation and amortisation of USD655.3 million.
Asiamet said it has also identified additional opportunities to further reduce capital, which will be explored through the engineering design phase.
"The majority of commodities analysts are predicting elevated long term copper prices primarily driven by the inability of mine supply to meet demand as the build out of renewable energy infrastructure and transport systems accelerates to meet the 2050 net zero emissions targets committed to by many of the advanced economies. Development of the BKM copper project is well timed to capture this opportunity," Asiamet said in a statement.
It labelled the release of this feasibility study as a "significant de-risking milestone" for the company.
"The time has come to deliver BKM to the market, with a project that not only has strong operating and financial fundamentals on current long-term copper pricing, but offers significant upside considering forecast supply/demand imbalance in the copper market looking 2-3 years into the future," said Chief Executive Officer Darryn McClelland.
"The work completed during the BKM copper project feasibility study update has given all those involved greater confidence in the execution of this important project with risk areas investigated, understood, and accounted for in the current project design. Delivering a smaller footprint project with higher grade has delivered a robust technical and financial outcome, reduced the disturbance area, and contributed to a lower overall level of environmental impact for the development.
"The company is looking forward to discussing opportunities for co-operation with parties who see the value of advancing BKM to production and unlocking the much bigger opportunity to develop multiple mines within the broader Beruang Kanan mineral district."
Shares in Asiamet closed down 11% to 1.04 pence each in London on Wednesday.
By Greg Rosenvinge, Alliance News reporter
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