JAKARTA (TheInsiderStories) -Gain and Win Pte. Ltd, an affiliated of PT Bumi Resources Minerals Tbk (IDX: BRMS) sell 51 percent shares of zinc-lead silver mining unit PT Dairi Prima Mineral to China Nonferrous Metal Industry’s Foreign Engineering & Construction Co. Ltd to pay debt, said one official. The signing of a share purchase agreement was made on April 29, 2017.
BRMS owns 80 percent of Dairi Prima Mineral, which mines in North Sumatra and the remaining is held by state-owned miner PT Aneka Tambang Tbk (IDX: ANTM). Muhammad Sulthon, Corporate Secretary of Bumi Minerals, said the sale of the shares is effective after the approval of several stakeholders of the company, Ministry of Energy and Mineral Resources, the Investment Coordinating Board, the Ministry of Law and Human Rights.
He added, other agreements required under Indonesia’s capital market and regulatory regulations and other agreements required under the laws of the People’s Republic of China. PT Bumi Resources Tbk (IDX: BUMI), Bumi Minerals’ parent company, has stated that its subsidiary is eyeing a partnership with a number of parties for the development of its mining assets.
“Through the agreement, Dairi Prima Mineral also has the opportunity to obtain new funding with better debt structure to develop the project,” said Sulthon in the information disclosure to Indonesia Stock Exchange on Wednesday.
In the fourth quarter of 2015, Dairi Prima and China Nonferrous signed a strategic cooperation agreement. Six months later, Dairi Prima and China Nonferrous signed a design, procurement and construction (EPC) design to build and monetize lead and zinc deposits in the Black Dog area.
Based on the company’s data, Dairi Prima’s Anjing Hitam and Lae Jahe Projects have 11 million tones of ore reserves, and it has one of the highest grade of Zinc deposit in the world (11.5% Zn ,6.8% Pb). The Anjing Hitam, Lae Jahe, Base Camp projects have significant resource base of 25 million tones of ore (11.5% Zn ,6.8% Pb) which is inclusive of reserves.
Contract of Work is located in North Sumatra and is proposed to be developed as an underground mining operation. In addition to the Anjing Hitam project, other prospects include the Lae Jahe and Base Camp sites.
Dairi Prima is an underground zinc mining project located in the Sopokomil area of the Dairi Regency which is part of the Indonesian province of North Sumatra. In addition to mining zinc sulfide ore, the company will mine as secondary ores, galena which is the mineral form of lead sulfide and silver.
Dairi Prima holds a Contract of Work (CoW) which was granted by the Government of Indonesia on February 18th, 1998. Under the terms of its CoW, unti of BRMS explores for minerals in a 27,420 hectare area located in the North Sumatra and Nangroe Aceh Darussalam provinces. On 23 July 2012, the GOI issued the Company’s Borrow-Use Permit that clears the way to commence development and production of the mine. Pre-development planning continues at present.
Bumi Minerals is currently preparing the mine development phase in their three main assets, namely Gorontalo Minerals, PT Citra Palu Minerals, and Dairi Prima. For Dairi Prima lead mine, Bumi Minerals will supply raw minerals to the existing zinc smelter in Sumatra so the company will not build its own smelter. The company is now exploring cooperation with smelter owners.