Finders Resources gets key mining permits for Wetar copper project in Indonesia

Finders Resources Ltd (ASX:FND) said it has been granted key mining permits for the development of the Wetar copper project in Indonesia, calling it a “major breakthrough”.

The permits, issued by the District of Maluku Barat Daya under the new Indonesian Mining Law, are valid for 20 years. Together they are equivalent to an Australian mining lease.

On issuing the permits, Drs Barnabas Orno, Regent of Maluku Barat Daya, Indonesia, said: “One of my priorities is a serious commitment to investors and entrepreneurs, both nationally and internationally, and to demonstrate that Maluka Barat Daya is very conducive for, and supportive of, investment.

“The Wetar copper project has shown a significant role in job creation and new economic activities for the local community. My request is that the issue of the Wetar copper operations permits will create momentum for the business community to increase participation in local development and will be seen as an encouraging message for investors.”

Finders managing director Chris Farmer said the permits are a major breakthrough for the development of the project.

“The Wetar project will be the first copper project in Indonesia which produces a value‐added product, LME grade A cathode, and the IUP processing and refining (permit) is the first of its kind to be awarded under the new Mining Law,” he said, adding: “The support for the project from the local community, government administration and members of parliament provides a firm basis for the commercial development of Wetar.”

Finders will be providing further updates in the near‐term regarding the results of the bankable feasibility study and the planned project timetable.

Subsidiary permits are required to utilize natural resources in the project area and commence building, however these are routinely issued post the mining permit and are not expected to materially delay the project timetable, the group added.

Finders is the operator of Wetar, with a 95 percent interest, and the Ojolali gold‐silver project, in which it holds 72 percent but with an option to acquire 100 percent, both located in Indonesia.

The Wetar project comprises two high grade deposits, Kali Kuning and Lerokis, which are located within 3 kilometres from the coast and suitable for open pit mining. The project benefits from having existing infrastructure in place, particularly a wharf, camp and roads and partially pre‐stripped copper ore bodies from a prior gold mining era.

Since February 2009, Finders has successfully operated a 5 tonne per day Solvent Extraction and Electrowinning (SX‐EW) demonstration plant. The demonstration plant produced and sold over 2,500 tonnes of LME Grade A copper cathode.

The development of Wetar comprises the brownfields expansion of the existing demonstration plant to 7,000 tonnes per annum capacity, followed by incorporation of the Whim Creek plant to lift production to 25,000 tpa.