Bumi to spend $211m for Dairi zinc-lead project

IDX-listed mining giant Bumi Resources needs to invest $211 million to develop its Dairi lead and zinc mine in North Sumatra.

Bumi?s Senior Vice President for Investor Relations Dileep Srivastava said that of the total amount, some $171 million would be used as capital expenditure, $30 million as working capital and $10 million for exploration.

Earlier, he said that the company would receive a permit for the utilization of protection forest in Dairi from the Ministry of Forestry by the end of this year and it expected to start production in 2012.

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. (*)