CENTRAL KALIMANTAN, INDONESIA - Asiamet Resources Limited has announced a significant reduction in the pre-production capital cost estimate for its BKM Copper Project, totaling a $58 million decrease compared to the previous feasibility study. The updated estimate positions the project favorably for financing discussions slated for early 2025.
The revised capital expenditure (capex) is now projected at $176.9 million, down from the $235.4 million estimated in May 2023. This reduction is attributed to a series of design and layout improvements aimed at streamlining the project and reducing complexity. The new estimate includes robust contingencies and allowances, with $22 million earmarked for project contingency and an additional $10 million for potential project scope growth.
Operational enhancements have been made to the project, with the revised mine plan increasing ore processed to 28.9 million tonnes at a strip ratio of 0.72, leading to an expected total copper cathode production of 124,500 tonnes over a 13.3-year mine life.
CEO Darryn McClelland expressed that the cost reduction is a pivotal achievement for Asiamet, enabling them to advance project financing discussions in the coming year. McClelland also highlighted the global demand for copper, positioning Asiamet for a transformative phase amid limited new industry supply forecasts.
Key drivers of the cost reduction include strategic decisions such as utilizing the mining fleet for project construction, re-assigning mine acid rock drainage management infrastructure, and increasing contingency provisions as recommended by the Independent (LON:IOG) Technical Expert.
Further project definition enhancements have led to improved cost forecasting, particularly in the crushing and agglomeration circuit and earthworks planning. Asiamet has also maintained alignment with key project partners, ensuring continuity and efficiency as the project moves into Detailed Engineering Design.
The updated feasibility study report for BKM is expected to be finalized and published in early 2025, with an Investor Meet Company presentation to follow, providing an overview of project economics and financing pathways.
This announcement is based on a press release statement by Asiamet Resources Limited and contains information considered inside information under the Market Abuse Regulation.
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