27
March 2024
Sustainable Power Solution
for Remote Mining: KSK Biomass Feedstock Study
Highlights
Asiamet Resources Limited
("Asiamet" or the "Company") is
pleased to announce the successful completion of the KSK Biomass
Feedstock Study, a crucial milestone in progressing a power
solution for the Company's BKM copper cathode project in Central
Kalimantan, Indonesia ("BKM" or the "BKM Copper Project").
Undertaken in collaboration with Britmindo Mining Services
Singapore Pte Ltd, the study is a comprehensive assessment aimed at
establishing a sustainable power solution for the BKM Copper
Project within and/or proximal to Asiamet's KSK licence area, in
which BKM is located.
The study, emphasising Asiamet's
commitment to a renewable energy solution for the proposed
greenfield BKM Copper Mine, addressed key parameters crucial for
the development of a biomass power station in a remote mining
region. All aspects
referenced below will be developed in further detail once project
execution and project development partners for the biomass power
station are locked in, which are expected to be achieved in Q2
2024.
Highlights
·
Abundant Biomass
Feedstock Resources: Through an
extensive in-field investigation, data collection and analysis, the
study has identified ample biomass feedstock sourced primarily from
palm oil mills within a 100km radius of the proposed power plant
location that could feed a biomass power station dedicated to the
BKM Copper Project. Robust feedstock supply not only ensures
operational sustainability but also aligns with Asiamet's
commitment to a renewable energy solution for BKM.
·
Remote Mining
Power Solution: The biomass power
station offers a reliable, renewable energy solution for producing
copper cathode at BKM. By leveraging local biomass resources, the
project contributes to increased economic empowerment in the direct
project area.
·
Power Plant
Location Assessment: Comprehensive
evaluation concluded, proposing a unique cost-effective and lower
carbon footprint transportation solution optimising available
biomass transportation routes and significantly reducing the
distance of the High-Voltage transmission line.
·
Partnership
model: Following the framework
outlined in the 2023 Feasibility Study, the biomass power plant
will be operated by a third party who will be responsible for its
construction, operation and maintenance. Asiamet is actively
engaged in advanced discussions with potential partners interested
in fully financing the dedicated biomass power plant for the BKM
Copper Project and will make a further announcement relating to an
MOU or similar agreement once this is complete.
·
Sustainability
Focus: The study underscores
Asiamet's commitment to sustainable development by prioritising the
use of renewable energy solutions to power BKM. Biomass feedstock
sourcing from palm oil mills promotes circular economy principles
and reduces reliance on fossil fuels.
Biomass Feedstock Study Scope
of Work
The scope of work for the KSK
Biomass Feedstock Study encompassed several key components aimed at
establishing a sustainable power solution for the BKM Copper
Project; these were as follows:
Identification of Palm Oil Mills
Initial efforts focused on
identifying and evaluating biomass feedstock sources, with a
particular emphasis on palm oil mills located within a 100km radius
of the proposed power plant location. Rigorous field investigations
and data analysis were conducted to assess the suitability and
availability of biomass feedstock, ensuring a robust supply chain
for the biomass power station. The palm oil derived biomass
material is of value for its energy content however it remains a
stranded asset due to its location. This opens the opportunity for
use in power generation for the BKM Copper Project at relatively
low cost.
Optimal Power Plant Location
Simultaneously, the study optimised
biomass transportation routes by evaluating existing infrastructure
and potential transport networks. This entailed detailed
assessments to minimise transportation distances and associated
costs while maximising logistical efficiency.
Site evaluations were then
undertaken to identify suitable locations for the biomass power
station, considering factors such as accessibility, environmental
impact, and proximity to biomass feedstock sources.
Cost Analysis of Feedstock Transportation
Thorough analysis of transportation
costs considers distance, terrain challenges, and environmental
sustainability. Strategies to minimise carbon footprint and
optimise logistical efficiency are integrated into transportation
planning models.
Viability of Transmission Line Construction
Detailed assessments of transmission
line route feasibility addressed terrain complexities and potential
cost implications. Emphasis was placed on minimising environmental
impacts and optimising energy transmission efficiency. Moreover,
the feasibility of constructing high-voltage transmission lines to
connect the biomass power station to the BKM Copper Project site
was thoroughly assessed. This involved conducting detailed surveys
to identify potential routes, evaluate terrain challenges, and
assess environmental impact and regulatory requirements.
Integration of Sustainability Principles
Throughout the study, sustainability
principles were paramount, with a focus on the use of renewable
biomass feedstock and minimising environmental disruption aligning
with Asiamet's commitment to responsible resource development and
environmental stewardship.
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."
ON
BEHALF OF THE BOARD OF DIRECTORS
Darryn McClelland, Chief Executive
Officer
-Ends-
For further information, please
contact:
Darryn McClelland
Chief
Executive Officer, Asiamet Resources Limited
Email: darryn.mcclelland@asiametresources.com
Tony
Manini
Executive Chairman,
Asiamet Resources Limited
Email: tony.manini@asiametresources.com
Investor Enquiries
Sasha Sethi
Telephone: +44 (0) 7891 677
441
Email: Sasha.sethi@flowcomms.com /
info@asiametresources.com
Nominated & Financial Adviser
Strand Hanson Limited
James Spinney / James Dance / Rob
Patrick
Telephone: +44 20 7409
3494
Email: asiamet@strandhanson.co.uk
Broker
Optiva Securities Limited
Christian Dennis
Telephone: +44 20 3137
1903
Email: Christian.Dennis@optivasecurities.com
Follow us on twitter @AsiametTweets
FORWARD-LOOKING
STATEMENT
This news release contains forward-looking statements that are
based on the Company's current expectations and estimates.
Forward-looking statements are frequently characterised by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among
others: the actual results of current exploration activities;
conclusions of economic evaluations; changes in project parameters
as plans continue to be refined; possible variations in ore grade
or recovery rates; accidents, labour disputes and other risks of
the mining industry; delays in obtaining governmental approvals or
financing; and fluctuations in metal prices. There may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking
statement speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements
are not guarantees of future performance and accordingly undue
reliance should not be put on such statements due to the inherent
uncertainty therein.