Slide 1: Building a Leading Indonesian Mining Business: BKM Copper Project
BUILDING A LEADING INDONESIAN MINING BUSINESS BKM Copper Project Feasibility Study Update Discussion August 2022 AIM : ARS JUNE 2019 August 2022
Slide 2: FS Sustaining Momentum
FS Sustaining Momentum • Value Engineering activity commenced Q2, 2021 investigating options for increasing extraction of copper from BKM resource with several options considered: • Outcome: alternatives were capital intensive and overall economics not supportive of progressing • Q1 2022 committed t
Slide 3: ITE Review of 2019 BKM Copper FS
ITE Review of 2019 BKM Copper FS • Bank recommended engineering consultancy engaged as an Independent Technical Expert (ITE) to conduct review of BKM Copper project FS to advise on preparedness for bank financing. • Concluded no “Fatal Flaws” with the project. • Various workstreams recommended updat
Slide 4: Feasibility Study Update: Optimization of BKM Pit
Feasibility Study Update Optimization of BKM Pit • Mining costs have been updated from 2018 Schedule of Rates, benchmarked against an operation of similar scale using the likely fleet to be employed at BKM. Mining costs based on a contractor model, so no capex for mining fleet. • Processing costs up
Slide 5: Feasibility Study Update: Newpro Engineering
Feasibility Study Update Newpro Engineering • NewPro progressed several fronts of engineering activity • Requests for pricing for key processing equipment have been issued • Key areas of optimsiation have included heap leach pad design and water management/treatment technologies. • Updating construc
Slide 6: Feasibility Study Update: Transport & Logistics
Feasibility Study Update Transport & Logistics • Positive interaction with government departments to confirm regulatory requirements related to significant road transportation, updating current situation. • Engaged experienced T&L service provider PT TransContinent to complete logistics survey and p
Slide 7: Feasibility Study Update: Transport & Logistics
Feasibility Study Update Transport & Logistics Detailed aerial survey completed of KSK Mining license and forestry access road. BKM Deposit Location 7
Slide 8: Feasibility Study – Power
Feasibility Study – Power • 15-20 MW base load – 24/7 • Diesel power generation remains a base case option, lowest CAPEX, highest OPEX. • FS team continuing to investigate lower cost options for delivery of power to the site. Power is the major “consumable” and achieving lowest cost delivers higher
Slide 9: Next Steps - Permitting
Next Steps - Permitting • Conditional Pinjam Pakai (Borrow to Use) Issued – final permit now referred to as a PAK (Penetapan Areal Kerja or Work Area Determination) • Final PAK is issued on completion of four key items. • KSK has completed 3 of these and close to finalizing the final requirement. •
Slide 10: Focus Areas FS Update
Focus Areas FS Update • Continue delivering on plan of agreed activities resulting from ITE review. • Intention to work with BUMA (DOID’s mining services business) providing input to the FS in key areas related to their skillset: • Mining Services schedule of rates • Process plant / heap leach earth
Slide 11: Opportunities
Opportunities • Development of local limestone deposit – needs basic exploration work but has potential to significantly reduce processing costs by reducing imported lime requirements. Exploration permit in process to allow work to commence. • Additional Ore – some prospective secondary copper anoma
Slide 12: Broader Themes
Broader Themes • Copper pricing under pressure however firming up from recent lows. • Recent reductions in commodity pricing will have eased input pricing for materials of construction. • A window of opportunity presents itself to build a new project when input prices have come off recent highs. • T