Asiamet signs MoU with China Nonferrous Metals for the BKM Copper project

LONDON: Asiamet Resources Limited has signed a Memorandum of Understanding (MoU) with China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd (China NFC), a subsidiary of China Nonferrous Metal Mining (Group) Co., Ltd. for value engineering and Engineering, Procurement and Construction Management (EPCM) Services for the BKM Copper project located in Central Kalimantan, Indonesia.

China NFC is a market leading Chinese contracting group with an internationally recognised capability, having successfully completed many mine developments across the Middle East, Central and North Asia, Central and South Africa, and neighbouring countries.

These implementation capabilities in nonferrous metal industry projects cover a wide range from technical assistance, technical consultancy, equipment manufacturing and supply to project management, project implementation and financing.

Of particular relevance to Asiamet, China NFC together with its Indonesian partners is currently building the Dairi Zinc Mine in North Sumatra, Indonesia and actively working to expand its presence in the country.

As part of the proposed engagement with Asiamet, China NFC will undertake a detailed evaluation of the technical and financial aspects of the BKM copper project and propose a series of solutions to the Company with respect to the value engineering and EPCM components of the proposed BKM mine development.

Utilising a China and local Indonesian-Southeast Asian sourcing strategy is expected to lower some of the BFS capital cost inputs and enhance overall project economics. 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.

Tony Manini, Asiamet’s Executive Chairman commented: “The signing of this MOU with China NFC represents an important strategic milestone for Asiamet and we are extremely pleased to have the opportunity to work with one of China’s leading mining, processing and contracting companies on the next stage of development of the BKM project. Engaging the services of such a highly credentialled Chinese Company to provide support for the value engineering phase is expected to enhance the overall economics and executability of the BKM project and provide access to a wider investor network in Asia.

Despite recent market volatility, supply-demand fundamentals for copper remain strong and while we still have a number of key engineering, financing and permitting milestones in front of us prior to commencing mine construction, the signing of this MOU and the initiation of the value engineering phase clearly demonstrates our ongoing commitment to developing the BKM copper project in the shortest timeframe possible. We look forward to providing further updates as we continue to advance the BKM project towards production.”

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