(Alliance News) - Asiamet Resources Ltd on Thursday said planned infrastructure upgrades by the government of Indonesia should "significant" benefit its BKM copper project.
The government, Asiamet said, is planning to upgrade roads and bridges within central Kalimantan, which will reduce Asiamet's operating costs in future related to transporting supplies in to the mine and exporting product.
Asiamet has already been reviewing ways to improve BKM, and this included looking into the use of the Bagendang port instead of Banjarmasin, as stipulated in BKM's feasibility study. The recent infrastructure initiatives, Asiamet said, mean Bagendang is now a viable option.
This could bring a more efficient turnaround time for transporting supplies and product, saving 280 kilometres per round trip. Several million US dollars could be saved, Asiamet added.
Asiamet Chief Executive Peter Bird commented: "Following completion of the BKM feasibility study the Asiamet team has continued to focus on further enhancing the value of the BKM copper project through the assessment of a number of opportunities identified and reported on as part of the study.
"The refinement of the logistics route to Sampit port and the associated reduction in operating costs over the life of mine is an excellent example of the value expected to be delivered from this process. Our team along with our technical service providers are systematically working through the 15 identified opportunities and expect to report further positive results as they come to hand."
"The BKM copper project remains one of the most advanced copper projects in Asia at a time when global mine supply is forecast to move into deficit. The delivery of a robust feasibility study and the opportunity for further significant upside through value engineering and exploration has increased awareness of the BKM project amongst a number of strategic investors and potential partners with whom discussions are continuing," Bird added.
Shares were 7.6% higher on Thursday afternoon in London at a price of 3.20 pence each.
Asiamet Res (ARS)