Asiamet Resources Ltd (LON:ARS) told investors it has landed a key approval for the BKM copper project in Indonesia, with the Governor of Central Kalimantan recommending the project to proceed into construction and development.
It is part of a process for the project to secure a forestry borrow-to-use (Pinjam Pakai) permit from the Government of Indonesia.
"Having recently secured the forestry permit for exploration, Asiamet is very pleased to have now received the Governor's recommendation for the Pinjam Pakai permitting process,” Asiamet executive chairman Tony Manini said in a statement.
READ: Asiamet gets greenlight for further exploration at KSK project
He added: “The company's highly capable local teams in Jakarta and Palangkaraya continue to deliver these important milestones and clearly demonstrate our ability to continue advancing the BKM copper project towards final approvals for mine development, despite the challenges presented by (coronavirus) COVID 19.
“The receipt of this approval from the governor is very timely and while the value of this work is often under-estimated, the receipt of key approvals and permits serves to significantly de-risk and add substantial value to the project.
“The company is making solid progress on other aspects of the Pinjam Pakai permitting process and will provide further updates as information comes to hand."
Asiamet noted that to secure the recommendation the company demonstrated that the BKM copper project is technically viable and commercially robust, with the project delivering a benefit to the local economy and community.
There are two further milestone items to address - a corridor agreement and a revised AMDAL.
The corridor agreement will allow an access route from the BKM site to port facilities. The company is required to negotiate negotiate multi-user road access and maintenance.
AMDAL, a version of an environmental impact assessment, needs to be approved by the Provincial Government Environmental Agency.
Once all three items are in place the company expects the Ministry of Environment and Forestry to issue a conditional approval for the Pinjam Pakai, though that approval can be conditional upon the fulfilment of certain requirements – including rehabilitation, finalisation of a reclamation bond, boundary tagging, and timber utilisation permit.