Bumi reviews N. Sumatra zinc-lead project

IDX-listed coal mining giant PT.Bumi Resources Tbk said was reviewing its Dairi Prima zinc-lead project in North Sumatra with a view to cut costs.

Senior VP Investor Relations Dileep Srivastava said on Monday that the company is currently renegotiating contracts while waiting for permit from forestry department.

Dileep said that the company was also redoing the economics of the project in the light to falling zinc-lead price.

?Once the above issues are settled, we can go on with fast track development that would see the project to be completed within 20-24 months? time,? he said on a sideline of Coaltrans Conference in Bali.

Estimated investment costs to develop the project is US$160-170 million, he said.

He also said that the search to find JV partner for the project continued.

Bumi took over ASX-listed firm Herald Resources, which controlled majority shares PT.Dairi Prima Minerals, the owner of Dairi zinc-lead project, through hostile takeover in 2008.

Prior to acquisition Herald had appointed McConnel Dowell to carry out all mining operations the first four years of the mine?s life.

The company, together with its 20 percent partner PT Aneka Tambang Tbk, is planning to develop Dairi zinc/lead project to process 1 million tons of ore per annum and to produce between 220,000 and 100,000 tons of zinc and lead concentrates annually.(alex)