22nd Aug 2024 17:35
(Alliance News) - Asiamet Resources Ltd on Thursday said it has found considerable capital expenditure savings at the BMK project with further savings anticipated before production begins.
The Indonesia-based copper producer has delivered substantial cost savings and efficiencies from ongoing optimisation work at the BKM copper project.
More than USD26 million of initial material capital cost savings have been identified, with further savings expected.
Chief Executive Officer Darryn McClelland said: "The resizing of equipment, revisions of suppliers and simplification of the process flowsheet for the staged construction of BKM are key drivers of these savings, and we expect anticipate further updates to detail significant additional capex reductions as we finalise our engineering assessments."
The optimisation programme is expected to deliver pre-production capital expenditure savings between USD50 million to USD80 million, significantly reducing the USD235.4 million estimated in the 2023 feasibility study.
Further data on reduced bulk earthworks volumes are expected to generate additional savings while adopting a higher grade, lower strip ratio mine design will require a smaller mining fleet and workforce leading to notable reductions in infrastructure costs.
"An environmental permit has been secured to commence a limestone resource definition drilling programme at the proximal Rinjen Limestone area, immediately to the north of the Project, as a local source of lime for copper processing. Strong interest has been received from leading power equipment suppliers for the biomass power station. These are critical path items for the project," Asiamet added.
Asiamet shares closed 2.9% higher at 0.88 pence each in London on Thursday.
By Elijah Dale, Alliance News reporter
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