Herald secures AMDAL approval for N. Sumatra Zinc/Lead project

Australian miner Herald Resources Limited had secured the vital environmental impact assessment (AMDAL) approval from the regent of Dairi for its North Sumatra Zinc/Lead project.

?The AMDAL, comprising the baseline environmental studies, proposal for the mine, concentrator and infrastructure development, environmental management and monitoring plans previously submitted to the dairy regency had been approved and signed off by Regent of Dairi On November1, 2005,? the company said.

The company said the approval is a major step on the way to full permitting of the project. ?Formal Submission will be made to the Minister of Energy and Mineral Resources for permission to proceed to development, subject to financing.

Herald, together with 20 percent partner PT. Aneka Tambang Tbk. is planning to develop Dairi zinc/lead project to process 1 MTPA of ore, producing 220,000 and 100,000 tonnes of zinc and lead concentrates PA.

Revised Feasibility Study (RFS) conducted by third party suggested total capital costs of US$ 118 million. Under the RFS, the company would truck its concentrate to the East coast of Sumatra port of Kuala Tanjung, where the 40,000 tons concentrate store would be built together with direct ship-loading jetty.

Herald, which is in the process of secure financing facilities from banks and customers, hopes to commence construction of the project early next year. (alex)