Asiamet Resources reports progress at BKM copper project

Asiamet Resources updated the market on its feasibility-stage BKM copper project in Central Kalimantan, Indonesia on Thursday.

The AIM-traded firm said that in terms of the debt finance process, significant progress had been made in December, and a proposal to secure lead arranger status for the project’s debt finance would be submitted to the prospective lead bank’s credit committee in the new year.

It had also initiated discussions with a prominent Indonesian bank to introduce the BKM Copper project, receiving positive feedback and indicating strong support from Indonesian banks for energy transition metals projects.

In offtake and prepayment financing, due diligence by prospective prepayment finance providers was ongoing, with one indicative term sheet received and further developments expected as debt financing progressed.

Engineering, procurement and construction (EPC) engagement was also progressing well, with advanced negotiations with reputable Indonesian and Chinese firms.

Letters of intent for early engineering works were planned for the first quarter of 2024.

For project optimisation, reviews of alternative facility locations and mine designs were nearing completion, with potential cost-saving opportunities in engineering and sourcing.

Regarding project permitting, discussions were ongoing for forestry access road usage, and an environmental impact assessment update was expected in the first half of 2024 due to project design changes.

The power supply for the BKM project was also advancing, with biomass sources identified and a final report expected early in the first quarter.

In concentrate logistics, an internal study supported combined truck and river barge haulage of concentrate product, with ongoing discussions for potential pyrite and copper concentrate production from the BKM primary resource, offering additional sulphur supply for Indonesia's nickel industry.

“2023 has seen a new baseline for the BKM Copper Heap Leach project delivered in the form of the fully updated feasibility study,” said chief executive officer Darryn McClelland.

“The study has been reviewed by an independent technical expert with the outcomes establishing the technical base for the project financing process.

“Asiamet, with its corporate advisory partner Grant Samuel, have been actively engaged with a proposed lead bank to progress the requirements needed to achieve first stage credit approval for the project as early as possible in the New Year.”

McClelland said the company had also formally introduced the BKM Copper project to a leading Indonesian bank with a view to progressing more detailed engagement early in 2024.

“An area of recent focus has been the engagement of engineering resources for the next phase of BKM project execution.

“This has to some degree been born from the outcomes of the review and engagement with a prospective lead bank relating to increasing levels of project confidence and accuracy as we advance project financing.

“We have a shortlist of preferred engineering companies to take the project forward, and will advise the market of these key appointments when formalised.”

Reporting by Josh White for Sharecast.com.