Dairi Prima Minerals to start production in Q4 2012

PT Dairi Prima Minerals (DPM), a joint venture of PT Bumi Resources Minerals Tbk (BRM) and state miner PT Aneka Tambang Tbk, is set to begin commercial production in the fourth quarter of 2012 at the company?s lead and zinc mine in Dairi, North Sumatra.

Herwin W. Hidayat, the company?s vice president for investors relations, said Thursday that the company would produce about 120,000 tons of zinc and 60,000 tons of lead in the first stage.

Kenneth P. Farrel, the company?s CEO said that the company would likely sell its production to Europe. Japan, South Korea and China. He said that the company was currently still waiting a production permit from the government.

Herwin said that the company was still in the process of obtaining certification from JORC Resources for both lead and zinc.

DPM's Anjing Hitam project has 5.4 million tons of ore reserves, and it has one of the highest grade of Zinc deposit in the world (13.7% Zn). The Anjing Hitam project has significant resource base of 20.1 million tons (inclusive of reserves).

DPM?s Contract of Work is located in North Sumatra and is proposed to be developed as an underground mining operation. In addition to the Anjing Hitam project, other prospects include the Lae Jahe and Base Camp sites. DPM received the exploration permit in October 2010 to undertake exploration activities. (giok)