Finders to dodge export tax

By Demas Simbolon

ASX-listed firm Finders Resources Ltd has on May 31 stated that the company already has plans to face the 2014 raw material export ban, dodging the 20 percent export tax for mineral ore.

In a presentation by Finders Managing Director Chris Farmer, the company said that it has received IUP OK PP for processing and refining on behalf of PT Batutua Tembaga Raya, a subsidiary, to conduct upgrading of its copper products from Wetar as soon as it starts its production, currently entering the demo stage to produce 2,500 tons LME Grade A cathode.

?Because the end product is 99 percent pure metal, there will be no export tax subjected to Finders,? Farmer said.

The company has acquired 20 years of mining and processing licenses, as well as US$138 million syndicated loan from Standard Chartered, Credit Suisse and Barclays. It has also updated its Bankable Feasibility Study, revising cost estimates in the Wettar Copper Project with slight increase in capital cost from US$155.4m to US$167.4m (7.7%) with reduction in operating cash costs to $1.07/lb Cu from $1.09/lb Cu.

The updated Bankable Feasibility Study also revealed up to 8.2 million tons of ore reserves of 2.5% Ave Cu grade at 0.86 strip ratio. With 9.2 years of initial mine life, the company expect to produce up to 25,000 tons per annum of cathode with 75 percent Ave Cu Recovery. The capital cost needed, including US17 million accuracy provision, is expected to amount to US$167.4 million, with Finders expected to meet break even point in 2014.

With 95 percent share in the Wetar Copper Project, Finders stated that the process of gazetting the new Spatial Plan of Maluku is close to completion, pending release of maps for formal signing and, when completed, will release much of the project area from a production forest classification. Production in Wetar will be initiated by PT Batutua Kharisma Permai, another subsidiary.

Editing by Er Audy Zandri