Business
Material Capex Reductions for BKM Copper Project
Material Capex Reductions for BKM Copper Project.
About this update from Asiamet Resources Limited
[{"type":"text","content":"\n\n22 August 2024 \n \nASIAMET RESOURCES LIMITED\n(\"Asiamet\" or the \"Company\")\n \nMaterial Capex Reductions from BKM Copper Mine Development Engineering\n \nAsiamet Resources Limited is pleased to announce that following the Company's strategic decision to reduce the scale of the initial BKM Copper Project (\"BKM\" or the \"Project\"), that ongoing optimisation work has resulted in substantial cost savings and efficiencies which are expected to significantly strengthen project financing options.\nHighlights:\n· Initial Capex Savings: Current optimisation work has identified potential material capital cost savings of in excess of US$26 million, with further cost savings expected.\n· Total Project Savings: Pre-production capex savings are expected to range between US$50-80 million, significantly reducing the US$235.4 million estimated in the 2023 Feasibility Study. The Company looks forward to progressively advising the market on further results from this optimisation work as it is received from our engineering partners over the coming weeks.\n· Strategic Financing Benefits: Reducing the upfront capital requirements will significantly lower the total funding required for project development.\n· Advancing Engineering Work: Revised equipment selection, reduced bulk earthworks and flowsheet simplification by engineering groups Rexline Engineering and BGRIMM is expected to deliver further material cost savings, noted above.\n· Infrastructure Developments: An environmental permit has been secured to commence a limestone resource definition drilling programme at the proximal Rinjen Limestone area, immediately to the north of the Project, as a local source of lime for copper processing. Strong interest has been received from leading power equipment suppliers for the Biomass Power Station. These are critical path items for the Project.\nThe optimisation process for the Project has been focused on a staged construction strategy and reducing upfront capital expenditures to reduce the total funding required for project development. These optimisation efforts have identified significant cost savings in excess of US$26 million primarily due to new equipment selection, process flowsheet simplification, and material reductions ...