Gold miner, PT Bumi Resources Minerals Tbk (IDX: BRMS) aims to expand its gold, zinc and lead plant with a total values investment up to US$546.25 million - Photo: Special

JAKARTA (TheInsiderStories) – Gold miner, PT Bumi Resources Minerals Tbk (IDX: BRMS) aims to expand its gold, zinc and lead plant with a total values investment up to US$546.25 million. One of the investments is the business alliance between PT Dairi Prima Mineral with China’ Nonferrous Metal Industry’ Foreign Engineering and Construction (NFC), to build a zinc and lead processing facility with costs $400 million.

NFC as the controlling 51 percent stake in the project, now in the process to seeks loan from the creditor. The loan is targeted to be achieved in the first semester of 2021. The spokesman, Herwin Hidayat, said in a virtual presser on Friday (11/12), the $280 million fund for expansion is expecting from the creditors, the rest is part of NFC and the company around$32 million.

Dairi Prima plant’ processing capacity is estimated at 1 million tones of zinc and lead ore. The manufacturer has underground mining operations with a concession area of 24,636 hectares (ha) near to Anjing Hitam sites in North Sumatera. Apart from the mines, other zinc mining areas that are close to each other are Lae Jahe and Base Camp.

Its production permit was approved by the government in December 2017 with a production period for 30 years. The mining life of the Anjing Hitam and Lae Jahe are 15 years with total reserves of 11.05 million tones of ore. The zinc deposits in this mine are claimed to be one of the highest quality deposits in the world.

For the gold project, the subsidiary of PT Bumi Resources Tbk (IDX: BUMI), is also preparing a number of expansions in the gold business with a budget of up to $146.25 million until 2023. In detail, the unit, PT Citra Palu Minerals, is working on the supporting infrastructure for the second gold factory with a capacity of 4,000 tones per day during June 2020 to December 2021.

The estimated cost of $70 million in the form standby letters of credit of PT Bank Negara Indonesia Tbk (IDX: BBNI). The mining and metals producer previously owned the first gold factory with a capacity of 500 tones per day which has been operating since the first quarter of 2020.

The company has mining concession rights covering an area of 85,180 ha in Central Sulawesi and South Sulawesi. Citra Palu is preparing to drill four gold mines in Poboya, Palu, which will be carried out during March 2021 to March 2022.

Estimated gold reserves and resources are around 15 million tones of ore. Apart from that, there is one prospect drilling that was carried out during the period March to September 2021 at the same mine. The estimated gold reserves and resources are predicted to be 5 million tones of ore. While, the estimated cost required for all drilling is around $23 million.

In April 29, 2017, Singapore’ Gain and Win Pte. Ltd, an affiliated of Bumi Resources Minerals sell 51 percent shares of Dairi Prima to NFC to pay the debt. The issuer owned 80 percent of Dairi Prima and the remaining is held by state-owned miner PT Aneka Tambang Tbk (IDX: ANTM)

Written by Editorial Staff, Email: theinsiderstories@gmail.com