PYX Resources Ltd (LSE:PYX, NSX:PYX), the world's third-largest publicly-listed zircon-producing mining company by resources, has secured approval to extract and process 48,000 tonnes of premium zircon this year from its Tisma deposit.
Granted by the Energy and Resource Service Department of the Central Kalimantan provincial government, the official go-ahead marks a significant step in PYX's growth trajectory.
The work plan and budget for Tisma, known as the Rencana Kegiatan dan Anggaran Biaya, encompasses a comprehensive range of activities, including mining operations, refining, marketing, environmental considerations, safety protocols, training initiatives and community development.
"Tisma is an important asset in our portfolio and its significant zircon, rutile and ilmenite reserves have the potential to significantly increase our production levels," said chairman and CEO Oliver Hasler.
"This will, in turn, have a positive effect on our earnings and export income in future years benefiting PYX stakeholders, including the local region and Indonesia as a whole."
This approval comes on the heels of a February decision that granted a 10-year licence to PYX's subsidiary, PT. Tisma Global Nusantara, for the Tisma tenement. This licence, renewable after its initial decade, permits continued exploration and mining activities in the designated area.
PYX Resources took ownership of the asset in January 2021. The project, 50km from the regional capital Palangkaraya in Central Kalimantan, Indonesia, spans 1,500 hectares.
The Tisma site boasts 137 million tonnes of JORC-compliant inferred resources, with a 4% heavy mineral concentration. This translates to an estimated 4.5 million tonnes of zircon, accompanied by valuable by-products like gold and titanium minerals.
The renewed permit's terms stipulate several financial obligations, including a 1.5% royalty on exported zircon, a fixed annual rent of US$4 per hectare to the Indonesian government and a 22% corporate tax rate.
Additionally, PYX is mandated to pay land and building taxes to the local government and fulfil environmental responsibilities, including reclamation bonding and plans.