Asiamet Resources has concluded negotiations with the Government of Indonesia to amend its existing KSK contract of work (CoW) in order to secure a long-term mining tenure over the BKM copper project in Central Kalimantan.
The company has increased the tenure over the project for up to 50 years as a result of the development.
Divestment is not required until after the tenth year of production under the newly negotiated agreement.
Asiamet is to be awarded an initial contract term of 30 years at the start of production from the project area as part of the revised CoW.
The company will be able to extend its tenure for two additional ten-year periods.
Asiamet Resources CEO Peter Bird said: “Signing the amendment to the KSK CoW is a major de-risking milestone for the company as we head into the project financing and development stage for our flagship BKM copper project.
“The company is firmly of the view that the KSK CoW has the potential to host a district scale pipeline of copper-gold and polymetallic mineral prospects, which are yet to be fully understood or appreciated.
“Achieving security of tenure and the fiscal framework for the KSK project significantly enhances our ability to deliver value for all our stakeholders, both through the development of the BKM copper project and the discovery of further nearby value creating opportunities such as the recent BKZ polymetallic deposit.”
The company is required to work towards, and assist, the government in supporting the policy of setting up metals processing facilities across the country under the new arrangement.
The revised CoW also focuses on royalty rates and fiscal framework, as well as commitments to prioritise the use of local labour and services.
Asiamet’s work programme for next year currently includes the completion of the BKM copper project feasibility study and delivering a maiden Resource for the BKZ polymetallic development.