Panax, Bumi?s unit in N. Sumatra geothermal deal
Thursday, November 12 2009 - 08:13 AM WIB
Under the MoU, Panax will fund a review and Pre Feasibility Study of the current target areas that have been identified with a view to the identification and application for suitable tenement areas, prior to the commencement of drilling activities.
Both parties have agreed that Dairi Prima will have the first right to any produced electrical output from the project, subject to the agreement of commercial terms between the parties. The MOU also provides for Panax and Dairi Prima to further work exclusively in the identification, exploration and development of potential geothermal targets in other areas of North Sumatra for the possible supply of Power to the Dairi Prima Project.
The Dairi Prima underground zinc/lead mining project, which is located in North Sumatra's regency of Dairi, is ready for development, subject to final permitting. The electricity requirements for this off-the-grid mine can be met by a power plant with a 20 to 30 MW installed capacity.
The area surrounding the Dairi Prima Mining Project hosts numerous geothermal prospects associated with Quaternary volcanic centres along the Sumatran transcurrent fault. The relatively shallow geothermal resources can be accessed through 2,000m deep wells, some of which are known to have the potential to produce up to 30 MW per well.
Obligations under the MOU are subject to any consents required from the Government of the Republic of Indonesia and PT Antam Tbk (the joint venture partner of Herald Resources Ltd in the Dairi project) and also subject to the terms of Dairi Prima?s mining concession. The final terms of any joint venture will be subject to similar requirements, Panax said. (kanti)