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Longer-term fundamentals remain very strong, says Asiamet chairman Tony Manini, as discussions with strategic partners continue

Published: 10:40 13 Mar 2020 GMT

Asiamet Resources -

Asiamet Resources Ltd (LON:ARS) remains focused on the ongoing development of its advanced stage high quality, copper, copper-gold and base-metals deposits in Indonesia, in spite of the wider market turmoil, the company said in a business update.

All licences and tenure for Asiamet’s KSK Contract of Work and Mining Business Licence for the Beutong project are in compliance with Indonesian regulations and in good standing.

The KSK Contract of Work, which covers 39,443 hectare in Central Kalimantan, includes the feasibility-stage BKM copper project.

The Beutong project covers over 10,000 hectares held under a Mining Business Licence in Nagan Raya Regency, Aceh. An Indonesian government-level feasibility study has been completed and the licence remains in good standing with up to 30 years of tenure remaining. 

In order to commence drilling, the company is currently awaiting a renewal of its forestry exploration permit, to be approved by the Ministry of Environment and Forestry and issued by Bandan Koordinasi Penanaman Modal, the investment co-ordinating body of Indonesia. 

As part of this process Asiamet has submitted all necessary documentation and plans to the Ministry of Mines, Energy and Mineral Resources and MEoF, and has received endorsement and approval from both government departments.

This permit is currently in its final stage of approval with BKPM which is now responsible for issuance of all business permits for Indonesia.

The BKM project lies in a very prospective mineral district and is one of very few copper development projects close to the end-user consumer markets in Asia, at a time when the copper market is forecast to move into a supply deficit due to a lack of investment in exploration and development over the past 10 years.  

The company is engaged in advanced discussions with a number of potential Asian strategic partners who recognise the rare opportunity presented by KSK, commencing with development of the BKM copper project.  It is the company's intent to finalise these partnering discussions as soon as is practically possible.

"While the copper market continues to be impacted by a number of macro factors including the US-China trade war and more immediately the Corona-virus outbreak, the longer-term fundamentals remain very strong,” said Asiamet chairman Tony Manini.

“Almost universally major and mid-tier base metals mining companies globally are actively pursuing new copper opportunities through exploration and business development activity. The simple fact remains that there has been a lack of investment in the copper sector over a long period of time while demand has been growing at a steady rate. The supply from existing projects is projected to be unable to meet future demand enhanced by green energy and electric vehicle applications. 

"With two of the best-undeveloped copper projects in the Asian region, Asiamet is extremely well placed to take advantage of this projected deficit in copper supply and the level of interest we have had in our projects from strategic investors in recent times clearly reflects this thematic. The high-quality group of potential partners we are engaged with remain focused on these longer-term fundamentals and are looking to secure development-ready copper projects at or near the bottom of the market,” Manini added.

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