Asiamet Resources Ltd (AIM:ARS, OTC:KMGLF) has announced capital expenditure capex reductions as part of its ongoing optimisation work at the BKM Copper Project.
The company has identified savings exceeding US$26 million, with total pre-production capex savings expected to range between US$50 million and US$80 million.
These reductions lower the original estimate of US$235.40 million from the 2023 feasibility study.
Asiamet’s capex savings were achieved through revised equipment selection, reduced earthworks, and simplifications in the process flowsheet.
Engineering partners Rexline Engineering and BGRIMM played key roles in delivering these efficiencies. Additional cost reductions are expected as the optimisation process continues.
In addition to these engineering improvements, Asiamet has secured environmental permits for a limestone drilling program at the nearby Rinjen Limestone area.
Progress is also being made on the Biomass Power Station project, which is vital for the project's power requirements.
Asiamet’s chief executive Darryn McClelland stated: "Our key focus is on delivering material updates to shareholders, the first of which is a reduction in upfront capex in excess of US$26 million.
“The resizing of equipment, revisions of suppliers and simplification of the process flowsheet for the staged construction of BKM are key drivers of these savings, and we anticipate further updates to detail significant additional capex reductions as we finalise our engineering assessments.”