REG - Asiamet Res Ltd - BKM Copper Project Power Solution Progressing

Asiamet ResourcesAnnouncement

20/10/2022 07:01

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RNS Number : 4353D  Asiamet Resources Limited  20 October 2022

 

 

20 October 2022

 

BKM Copper Project Power Solution Progressing

 

Asiamet Resources Limited ("ARS" or the "Company") is pleased to provide an
update in relation to the potential power solution for the BKM copper project,
located in Central Kalimantan, Indonesia.

 

Following the execution of a memorandum of understanding between the
Indonesian State Electricity Company (PLN) and the Company in September 2022,
PLN has undertaken a powerline route survey and site visit to evaluate the
viability of installing a new transmission line to provide grid power to the
BKM site. Senior representatives of PLN have indicated a high level of support
for the development of the new transmission line and the additional power
consumption this will deliver to Central Kalimantan due to there being an
excess of power available in the province. The outcome of the work with PLN
will be delivery of the preferred technical solution and commercial
consideration for grid power supply to the BKM Copper project.

 

The current envisaged plan would be to install a transmission line from a new
substation at Kuala Kurun, approximately 80 line kms from the BKM site and
would include the installation of a substation at the mine.

 

Given the implications of recent cost increases for hydrocarbon fuels,
establishing a connection to the grid provides access to reliable low cost
power which:

 

·    significantly improves project economics for the development of the
BKM copper project and any future growth opportunities on the KSK CoW.

·    reduces long haul transportation of fuel from ports to site,
significantly reducing both cost and the carbon footprint of the project;

·    depending on the chosen transmission system and route, possible
provision of power to local communities who are currently without grid power.

The results of this work will be incorporated into the 2022 Feasibility Study
Update (FS Update).

 

Whilst the progress with PLN has been very encouraging the company continues
to investigate additional options of power supply for the BKM project. The
company has engaged Indonesian firm PT Britmindo Indonesia to complete a
scoping study on the viability of power generation via Biomass. There exists
significant feedstock of Biomass from Palm Oil Mills within reasonable
proximity to the KSK contract of work area.  Biomass represents a source of
renewable energy for the project and has the potential to deliver a similar
cost option to grid power. A third option, the provision of natural gas to the
site for power generation continues to be considered with ongoing engagement
with related parties. The company considers it critical to have multiple
options available for such an important input to the project however at the
end of the process one solution for power supply will be selected to take
forward.

 

Darryn McClelland, Asiamet Chief Executive Officer commented:

 

"Having PLN complete the transmission line survey and site visit is an
important milestone for the BKM copper project. The connection of the site to
grid power has the potential to materially change the economics of the project
and becomes an enabler for future development of the KSK contract of work.

The company will continue to work closely with all parties to deliver a
solution for reliable, low cost power for BKM Copper. Ongoing work to enable
this solution is being advanced jointly with PLN and others and we will
continue to provide regular updates on these activities. It is expected work
on power supply will be advanced to the required degree of confidence for
inclusion in the FS update with ongoing requirements taken through into the
detailed design phase of the Project.

As major work streams conclude we will continue to provide further updates on
the Feasibility Study."

 

-Ends-

 

For further information, please contact:

Darryn McClelland
Chief Executive Officer, Asiamet Resources Limited

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

 

Investor Enquiries

Sasha Sethi

Telephone: +44 (0) 7891 677 441

Email: Sasha@flowcomms.com (mailto:Sasha@flowcomms.com) /
info@asiametresources.com

Asiamet Resources Nominated Adviser
RFC Ambrian Limited

Bhavesh Patel / Stephen Allen

Telephone: +44 (0)20 3440 6800

Email: Bhavesh.Patel@rfcambrian.com (mailto:Bhavesh.Patel@rfcambrian.com)  /
Stephen.Allen@rfcambrian.com (mailto:Oliver.Morse@rfcambrian.com)

 

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

 

 

This announcement contains inside information as stipulated under the Market
Abuse Regulations (EU) no. 596/2014 ("MAR").

 

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