BRMS denies report on suspension of zinc operations
Friday, August 3 2012 - 09:46 AM WIB
IDX-listed PT Bumi Resources Mineral Tbk (BRM) denied reports that the company may halt zinc operations in North Sumatra, saying the report was ?an inaccurate speculation?.
Previously, Petromindo.com, quoting The Jakarta Post, reported that the company may halt zinc operation as it is unlikely to comply with the government?s regulation that would ban export of raw materials.
?This statement is inaccurate. Our company, PT Bumi Resources Minerals Tbk has never made such statements,? Herwin W. Hidayat, VP Investor Relations of PT Bumi Resources Minerals said in a statement sent to Petromindo on Friday.
?Our company?s disclosures remain consistent that we are still reviewing the new mining regulation and exploring the available possibilities in light of the new regulation.?
Citing the company?s recent press release, he pointed out that BRM had secured the borrow and use mining and exploitation permit for its zinc and lead concession operated by its subsidiary, PT Dairi Prima Mineral (DPM), in North Sumatera on July 23, 2012.
The release also stated that DPM has one of the highest zinc deposit grades in the world (zinc and lead grades of 11.5 percent and 6.8 percent respectively) and the JORC standard reserve and resource estimates of 11 millions tons and 25 million tons of ores respectively.
DPM is expected to commence first zinc and lead production in the second semester of 2014 with a production rate of 1 million tons of ore per annum.
Editing by Adianto P. Simamora