REG - Asiamet Resources Ld - Sustainable Power Solution for BKM Copper Project

Asiamet ResourcesAnnouncement

27/03/2024 07:00

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RNS Number : 4224I  Asiamet Resources Limited  27 March 2024

27 March 2024

 

Sustainable Power Solution for Remote Mining: KSK Biomass Feedstock Study
Highlights

 

Asiamet Resources Limited ("Asiamet" or the "Company") is pleased to announce
the successful completion of the KSK Biomass Feedstock Study, a crucial
milestone in progressing a power solution for the Company's BKM copper cathode
project in Central Kalimantan, Indonesia ("BKM" or the "BKM Copper Project").
Undertaken in collaboration with Britmindo Mining Services Singapore Pte Ltd,
the study is a comprehensive assessment aimed at establishing a sustainable
power solution for the BKM Copper Project within and/or proximal to Asiamet's
KSK licence area, in which BKM is located.

The study, emphasising Asiamet's commitment to a renewable energy solution for
the proposed greenfield BKM Copper Mine, addressed key parameters crucial for
the development of a biomass power station in a remote mining region. All
aspects referenced below will be developed in further detail once project
execution and project development partners for the biomass power station are
locked in, which are expected to be achieved in Q2 2024.

Highlights

·    Abundant Biomass Feedstock Resources: Through an extensive in-field
investigation, data collection and analysis, the study has identified ample
biomass feedstock sourced primarily from palm oil mills within a 100km radius
of the proposed power plant location that could feed a biomass power station
dedicated to the BKM Copper Project. Robust feedstock supply not only ensures
operational sustainability but also aligns with Asiamet's commitment to a
renewable energy solution for BKM.

 

·    Remote Mining Power Solution: The biomass power station offers a
reliable, renewable energy solution for producing copper cathode at BKM. By
leveraging local biomass resources, the project contributes to increased
economic empowerment in the direct project area.

 

·    Power Plant Location Assessment: Comprehensive evaluation concluded,
proposing a unique cost-effective and lower carbon footprint transportation
solution optimising available biomass transportation routes and significantly
reducing the distance of the High-Voltage transmission line.

 

·    Partnership model: Following the framework outlined in the 2023
Feasibility Study, the biomass power plant will be operated by a third party
who will be responsible for its construction, operation and maintenance.
Asiamet is actively engaged in advanced discussions with potential partners
interested in fully financing the dedicated biomass power plant for the BKM
Copper Project and will make a further announcement relating to an MOU or
similar agreement once this is complete.

 

·    Sustainability Focus: The study underscores Asiamet's commitment to
sustainable development by prioritising the use of renewable energy solutions
to power BKM. Biomass feedstock sourcing from palm oil mills promotes circular
economy principles and reduces reliance on fossil fuels.

 

Biomass Feedstock Study Scope of Work

The scope of work for the KSK Biomass Feedstock Study encompassed several key
components aimed at establishing a sustainable power solution for the BKM
Copper Project; these were as follows:

Identification of Palm Oil Mills

Initial efforts focused on identifying and evaluating biomass feedstock
sources, with a particular emphasis on palm oil mills located within a 100km
radius of the proposed power plant location. Rigorous field investigations and
data analysis were conducted to assess the suitability and availability of
biomass feedstock, ensuring a robust supply chain for the biomass power
station. The palm oil derived biomass material is of value for its energy
content however it remains a stranded asset due to its location. This opens
the opportunity for use in power generation for the BKM Copper Project at
relatively low cost.

Optimal Power Plant Location

Simultaneously, the study optimised biomass transportation routes by
evaluating existing infrastructure and potential transport networks. This
entailed detailed assessments to minimise transportation distances and
associated costs while maximising logistical efficiency.

Site evaluations were then undertaken to identify suitable locations for the
biomass power station, considering factors such as accessibility,
environmental impact, and proximity to biomass feedstock sources.

Cost Analysis of Feedstock Transportation

Thorough analysis of transportation costs considers distance, terrain
challenges, and environmental sustainability. Strategies to minimise carbon
footprint and optimise logistical efficiency are integrated into
transportation planning models.

Viability of Transmission Line Construction

Detailed assessments of transmission line route feasibility addressed terrain
complexities and potential cost implications. Emphasis was placed on
minimising environmental impacts and optimising energy transmission
efficiency. Moreover, the feasibility of constructing high-voltage
transmission lines to connect the biomass power station to the BKM Copper
Project site was thoroughly assessed. This involved conducting detailed
surveys to identify potential routes, evaluate terrain challenges, and assess
environmental impact and regulatory requirements.

Integration of Sustainability Principles

Throughout the study, sustainability principles were paramount, with a focus
on the use of renewable biomass feedstock and minimising environmental
disruption aligning with Asiamet's commitment to responsible resource
development and environmental stewardship.

 

Darryn McClelland, Chief Executive Officer, commented:

"In addition to our other ongoing workstreams and corporate development
activity, the KSK Power Study exemplifies Asiamet's commitment to sustainable
mining practices and renewable energy initiatives. By prioritising
environmental stewardship and community engagement, Asiamet aims to set a
benchmark for responsible resource development in remote mining regions.

"Securing a consistent, sustainable power supply is paramount for any mining
project, and the proposed Biomass Power Station enhances the environmental
sustainability of the BKM Copper Project. We are particularly encouraged by
substantial interest from potential partners in financing the power plant.
Further details will be shared in due course.

"Considering the recent material uplift in the copper price, our projects are
being increasingly recognised for their strategic importance. According to
analyst reports copper supply will be constrained for years to come
necessitating the fast-tracking or acquisition of new projects to meet global
demand; the lack of exploration in copper and new discoveries will mean copper
prices will likely be at new higher levels for a prolonged period.  With a
defined power solution now coupled with its high-quality resources, Asiamet
has a clear pathway to production at BKM and is well-positioned to capitalise
on these trends. The Board and management remain highly committed to
delivering value from our asset base for all stakeholders.

"We also look forward to providing a further update this quarter, specifically
regarding the appointment of partners for the BKM front end engineering design
("FEED") and project execution. We believe that early engagement of our
project execution partners will be key to BKM's success and underscores our
focus on efficient and effective advancement of the BKM copper mine
development."

 

ON BEHALF OF THE BOARD OF DIRECTORS

Darryn McClelland, Chief Executive Officer

-Ends-

 

For further information, please contact:

 

Darryn McClelland
Chief Executive Officer, Asiamet Resources Limited

Email: darryn.mcclelland@asiametresources.com
(mailto:darryn.mcclelland@asiametresources.com)

 

Tony Manini
Executive Chairman, Asiamet Resources Limited

Email: tony.manini@asiametresources.com
(mailto:tony.manini@asiametresources.com)

 

Investor Enquiries

Sasha Sethi

Telephone: +44 (0) 7891 677 441

Email: Sasha.sethi@flowcomms.com / info@asiametresources.com

Nominated & Financial Adviser
Strand Hanson Limited

James Spinney / James Dance / Rob Patrick

Telephone: +44 20 7409 3494

Email: asiamet@strandhanson.co.uk (mailto:asiamet@strandhanson.co.uk)

 

Broker

Optiva Securities Limited
Christian Dennis

Telephone: +44 20 3137 1903

Email: Christian.Dennis@optivasecurities.com
(mailto:Christian.Dennis@optivasecurities.com)

 

Follow us on twitter @AsiametTweets

 

FORWARD-LOOKING STATEMENT

This news release contains forward-looking statements that are based on the
Company's current expectations and estimates. Forward-looking statements are
frequently characterised by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other
similar words or statements that certain events or conditions "may" or "will"
occur. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or results to
differ materially from estimated or anticipated events or results implied or
expressed in such forward-looking statements.   Such factors include, among
others: the actual results of current exploration activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; possible variations in ore grade or recovery rates; accidents, labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing; and fluctuations in metal prices.  There
may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended.  Any forward-looking statement speaks
only as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.

 

 

 

 

 

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