Dairi Prima to supply zinc to Lumbung starting 2016

Zinc mining company PT Dairi Prima Mineral plans to supply zinc concentrates to a planned smelter of its sister company PT Lumbung Mineral Sentosa starting 2016, Kontan reported on Friday.

Dairi and Lumbung are both subsidiaries of IDX-listed mining firm PT Bumi Resources Minerals Tbk.

The paper quoted Lumbung Director Ricky Gowdjali as saying that the two companies have already met with the Ministry of Energy and Mineral Resources to determine the selling price formula.

Dairi operates a 27,420 hectares zinc concession in North Sumatra. While the company is planning to develop a processing facility to produce zinc concentrates, it has no plan to set up a smelter facility considering the limited reserves of its concession. It would supply the zinc concentrates to Lumbung?s planned smelter.

Meanwhile, Lumbung plans to develop zinc and lead smelter with a capacity of 20,000 tons per year, which is expected to be completed in 2016.

The company has recently obtained export permit from the government, and plans to export a total of 10,000 tons of zinc and lead concentrates until end of December of this year. (*)