JAKARTA (TheInsiderStories) – PT Dairi Prima Mineral (DPM), a subsidiary of PT Bumi Resource Minerals Tbk (IDX:BRMS), has obtained a 30-year production permit for Dairi Lead-Zinc Mine in North Sumatra.

Bumi Resources holds an 80 per cent stake in Dairi Prima and the remaining 20 per cent belongs to PT Aneka Tambang Tbk (ANTM).

Bumi Resources Minerals Chief Operating Officer Suseno Kramadibrata said the company’s subsidiary obtained production licenses for lead and zinc mines on Dec. 18, 2017.

According to him, the construction of the Dairi Prima Mineral zinc mine will take 22 months and is expected to start producing by the end of 2019.

Construction of the mine, located in Sidikalang, North Sumatra, is expected to require an investment of US$ 350 million, most of which will be obtained from banks in China.

The Dairi deposit, is one of the premiere underdeveloped lead-zinc deposits, contains an estimated 1.2 million tons of zinc, 0.7 million tons of lead and over 3 million ounces of silver.

The deposit will be extracted using a combination of underground mining and a conventional processing plant comprised of crushing, grinding, and differential froth flotation to produce separate lead and zinc concentrates.

The expected ore production, according to the feasibility study, will be 1 million tons of ore per annum (approximately 3,000 t/day). A second resource on the same concession known as Lae Jahe is expected to contain a similar amount of zinc, lead and silver.

Andrew Neale, CEO & President Director of BRMS said “This is another important step forward in the development of the world-class Dairi project, and myself and all the company stakeholders are very appreciative of the efforts of our Dairi team and their counterparts at ESDM to make this happen.”

Dairi Prima Mineral is an underground zinc mining project, located in Sopokomil area of the Dairi Regency in North Sumatra. In addition to zinc sulfide ore, the company will also mine secondary ores such as galena, which is the mineral form of lead sulfide and silver.

The company holds a Contract of Work (CoW), which was granted by the government on Feb. 18, 1998. Under the term of the CoW, the company may explore for minerals in a 27,420-hectare area, located in North Sumatra and Nangroe Aceh Darussalam provinces. In July 2012, the government issued the company a so-called Borrow-Use Permit that clears the way for them to commence the development and production of the mine.

Written by Elisa Valenta, email: elisa.valenta@theinsiderstories.com