London-listed Asiamet said on Thursday that a number of recent government infrastructure initiatives and planned upgrades to bridges and roads within central Kalimantan were expected to significantly improve transport and logistics options for its BKM copper project.
The infrastructure upgrades should result in reduced operating costs relating to the transport of supplies in and copper cathode out of the proposed BKM mine site.
Asiamet published a feasibility study for BKM in June and has since been working on ways to enhance the project, one of which was to review the logistics and transport section of the study.
One of the alternatives the company is now considering is to use the Bagendang port (Sampit port), rather than the Banjarmasin port used in the BKM feasibility study.
Recent infrastructure initiatives and planned upgrades to government bridges and roads have now allowed the study team to review this alternative route as a preferred logistical hub.
Asiamet said the revised option would save about 140 km per one way trip or 280 km per round trip. The distance from the BKM site to Banjarmasin port is about 495 km, compared with 350 km from site to the Sampit port.
The transport option should also improvement operating costs by “several millions of dollars” over the initial life-of-mine (LoM), owing to the shorter logistics distance.
The Sampit port is an established container terminal for smaller vessels and cargo.
The BKM copper project remains one of the most advanced copper projects in Asia at a time when global mine supply is forecast to move into deficit. The delivery of a robust feasibility study and the opportunity for further significant upside through value engineering and exploration has increased awareness of the BKM project amongst a number of strategic investors and potential partners with whom discussions are continuing,” said CEO Peter Bird.
The June 2019 feasibility study confirmed a robust copper project, based on openpit mining and solvent extraction-electrowinning copper heap leach processing.
The mine, which is expected to require $192-million in capital, will produce 25 000 t/y of copper cathode over nine years, generating LoM revenue of $1.27-billion.
The feasibility study delivered a post-tax net present value of $133.5-million and an internal rate of return of 19.5%.