Asiamet Resources Limited BKM Copper Project Power Solution Progressing (4353D)
October 20 2022 - 2:00AM
UK Regulatory
TIDMARS
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 @ asiametresources .com
Investor Enquiries
Sasha Sethi
Telephone: +44 (0) 7891 677 441
Email: 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 / Stephen.Allen@rfcambrian.com
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137 1903
Email: Christian.Dennis@optivasecurities.com
Follow us on twitter @AsiametTweets
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