Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) said a biomass power plant fed by waste material from local palm oil mills would offer a "reliable, renewable energy solution" for its BKM copper cathode project in Central Kalimantan, Indonesia.
This was one of the chief conclusions from a biomass feedstock study undertaken in collaboration with Britmindo Mining Services Singapore, which identified there would be "ample" biomass feedstock available, primarily from palm oil mills within a 100km radius of the proposed power plant, making the location of the plant an important consideration.
Talks are underway with potential third parties to operate the plant.
Asiamet CEO Darryn McClelland said: "Securing a consistent, sustainable power supply is paramount for any mining project, and the proposed biomass power station enhances the environmental sustainability of the BKM copper project.
"We are particularly encouraged by substantial interest from potential partners in financing the power plant."
He added that the power study exemplifies the company's commitment to sustainable mining practices and renewable energy initiatives.
Looking to the wider importance of the BKM mine and other Asiamet projects against a background of soaring copper prices, McClelland said they are "being increasingly recognised for their strategic importance".
"According to analyst reports copper supply will be constrained for years to come necessitating the fast-tracking or acquisition of new projects to meet global demand; the lack of exploration in copper and new discoveries will mean copper prices will likely be at new higher levels for a prolonged period.
"With a defined power solution now coupled with its high-quality resources, Asiamet has a clear pathway to production at BKM and is well-positioned to capitalise on these trends. The board and management remain highly committed to delivering value from our asset base for all stakeholders."
The company intends to provide a further update this quarter regarding the appointment of partners for the BKM front-end engineering design and project execution.
McClelland said engagement of project partners will be "key to BKM's success and underscores our focus on efficient and effective advancement of the BKM copper mine development".