Asiamet Resources (LON:ARS) told investors that it has received a key approval allowing for the BKM copper project in Indonesia to proceed to the development and construction phase.
The project, which is located in Central Kalimantan, overlaps with a forest area that allows commercial activities including mining and therefore requires a 'borrow-to-use forestry permit'.
The copper producer said it has now received a recommendation from the Governor of the area as part of the process required to secure the permit, also known as ‘Pinjam Pakai’, from the Indonesian government.
To secure a permit, the company needs to meet three requirements including the Governor's recommendation, a corridor agreement and a revised environmental impact assessment.
The group was able to secure the Governor’s recommendation by proving the project to be technically viable, commercially robust and beneficial to the local economy and community.
Meanwhile, Asiamet is now negotiating multi-user road access and maintenance with forestry concession holders which use and maintain the route from the BKM site to the intended port facilities.
Shares in Asiamet were trading 6.19% higher at 2.575p on Friday morning.
As a result of some changes in project scope such as port location and logistical routes, some surveys are now required to update the current environmental impact assessment or ‘AMDAL’.
The group said the revision will largely utilise the previous work and data already provided to the Indonesian Government and completed in the feasibility study and that various surveys are currently being scheduled and undertaken.
Upon reaching these three milestones, the group expects the Ministry of Environment and Forestry to issue a conditional approval for the Pinjam Pakai.
“The company's highly capable local teams in Jakarta and Palangkaraya continue to deliver these important milestones,” said Asiamet's Executive Chairman, Tony Manini.
He added that the group’s achievements were demonstrative of its ability to advance the project towards final approvals for mine development despite challenges presented by Covid-19.
“While the value of this work is often under-estimated, the receipt of key approvals and permits serves to significantly de-risk and add substantial value to the project,” he said.
Asiamet said it is making “solid progress” on other aspects of the Pinjam Pakai permitting process and expects to provide further updates as information comes to hand.
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