Asiamet Resources completes biomass feedstock study for BKM copper project

LONDON: Asiamet Resources Limited has announced the successful completion of the KSK Biomass Feedstock Study. This pivotal study marks a major step forward in establishing a renewable power solution for the BKM copper cathode project in Central Kalimantan, Indonesia.

The comprehensive assessment, conducted in collaboration with Britmindo Mining Services Singapore Pte Ltd, has identified abundant biomass feedstock resources within a 100km radius of the proposed power plant location.

These resources, primarily sourced from palm oil mills, are set to ensure operational sustainability and support Asiamet’s commitment to renewable energy solutions.

The study has also highlighted the potential for a remote mining power solution that leverages local biomass resources, thereby contributing to economic empowerment in the project area.

A detailed evaluation has proposed a power plant location that offers a cost-effective and lower carbon footprint transportation solution, optimizing biomass transportation routes and reducing the distance for the High-Voltage transmission line.

Asiamet is actively engaged in discussions with potential partners interested in fully financing the dedicated biomass power plant for the BKM Copper Project.

The company expects to lock in project execution and development partners for the biomass power station by Q2 2024, with further announcements to be made regarding MOUs or similar agreements.

The scope of work for the study included identifying palm oil mills as biomass feedstock sources, optimizing power plant location, conducting cost analysis of feedstock transportation, assessing the viability of transmission line construction, and integrating sustainability principles throughout the project.

The palm oil-derived biomass material, while currently a stranded asset due to its location, presents an opportunity for low-cost power generation for the BKM Copper Project. The study’s focus on sustainability aligns with Asiamet’s commitment to responsible resource development and environmental stewardship, prioritizing renewable energy solutions and minimizing environmental disruption.

This initiative underscores Asiamet’s dedication to sustainable development and positions the company at the forefront of renewable energy integration in the mining industry.

Darryn McClelland, Chief Executive Officer, commented: “In addition to our other ongoing workstreams and corporate development activity, the KSK Power Study exemplifies Asiamet’s commitment to sustainable mining practices and renewable energy initiatives.

By prioritising environmental stewardship and community engagement, Asiamet aims to set a benchmark for responsible resource development in remote mining regions.

“Securing a consistent, sustainable power supply is paramount for any mining project, and the proposed Biomass Power Station enhances the environmental sustainability of the BKM Copper Project. We are particularly encouraged by substantial interest from potential partners in financing the power plant. Further details will be shared in due course.

“Considering the recent material uplift in the copper price, our projects are being increasingly recognised for their strategic importance.

According to analyst reports copper supply will be constrained for years to come necessitating the fast-tracking or acquisition of new projects to meet global demand; the lack of exploration in copper and new discoveries will mean copper prices will likely be at new higher levels for a prolonged period. 

With a defined power solution now coupled with its high-quality resources, Asiamet has a clear pathway to production at BKM and is well-positioned to capitalise on these trends. The Board and management remain highly committed to delivering value from our asset base for all stakeholders.

“We also look forward to providing a further update this quarter, specifically regarding the appointment of partners for the BKM front end engineering design (“FEED”) and project execution.

We believe that early engagement of our project execution partners will be key to BKM’s success and underscores our focus on efficient and effective advancement of the BKM copper mine development.”

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