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Asiamet Resources eyes better project economics at BKM thanks to Chinese contractor

The AIM-listed company has signed an agreement with a subsidiary of China Nonferrous Metal Mining Group, the state-run mining giant

Asiamet Resources - Kalimantan project

Asiamet Resources Ltd (LON:ARS) expects to improve the economics of its Beruang Kanan Main (BKM) copper project in Indonesia after signing up a well-connected Chinese engineering, procurement and construction management contractor.

The AIM-listed company, which completed a bankable feasibility study (BFS) in June and this month raised £1.75mln for the project, has signed an agreement with a subsidiary of China Nonferrous Metal Mining Group, the state-run mining giant.

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China NFC, which is already active in Indonesia through its development of the Dairi zinc mine in North Sumatra, will carry out a detailed evaluation of the technical and financial aspects of BKM and suggest ways of sourcing locally and from China to lower some of the BFS capital cost inputs.

“The potential to access China NFC's strong linkage’s with Chinese capital providers and project and equipment financiers will be explored in detail as part of this engagement,” Asiamet said.

Furthermore, the company aims to work with the contractor to cut costs in engineering and design, procurement, construction and project management.

BKM, which is situated in Central Kalimantan and is part of the company's 100%-owned Kalimantan Surya Kencana (KSK) district projects, is projected to offer US$1.27bn of life-of-mine revenue, with initial capital expenditure estimated at US$192mln and the C1 cash costs forecast at US$1.65 per pound of copper.

Quick facts: Asiamet Resources

Price: 2.45 GBX

Market: AIM
Market Cap: £36.12 m

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