Bumi says Dairi zinc-lead mine expected to contribute $300m
Thursday, December 31 2009 - 01:46 AM WIB
Bumi?s President Director Ari Sapta Hudaya said in Jakarta on Wednesday that the zinc and lead production from the Dairi mine was expected to reach 150,000 tons a year. ?The mine can produce 150,000 tons a year when the production reaches its full capacity,? he said.
The mine is still waiting for the government?s permit to begin exploitation activities. ?The Dairi mine can begin production within a year after it receives the permit,? Ari said.
The problem is that the mine is located in protected forests and the government is planning to issue a regulation obliging any party wishing to use protected forests to provide lands of the same size on the same island or province in replacement.
Bumi earlier said that the company would receive a permit for the utilization of protected forest from the Ministry of Forestry by the end of this year and it expected to start production in 2012.
Bumi has allocated a total investment of about US$211 million for the development of the mine. Of the total, about $171 million will be used for capital expenditure, $10 million for exploration costs and another $30 million for working capital.
The Dairi concession has three fields, Anjing Hitam, Basecamp and Lae Jahe. The three fields own mineral reserves of about 16.4 million tons, with proven portion of 13.4 percent for zinc and 7.8 percent for black tin.
Bumi took over ASX-listed Herald Resources, which controlled the majority shares of PT. Dairi Prima Minerals, the owner of Dairi zinc-lead project, through hostile takeover in 2008.
The company, together with its 20 percent partner PT Aneka Tambang Tbk, then planned 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. (*)