Search, ANTAM sign processing plant technology deal
Thursday, May 24 2012 - 12:51 AM WIB
Canadian mining firm Search Minerals Inc. announced Wednesday that it has signed a Heads of Agreement with Indonesian state miner PT ANTAM (Persero) to cooperate in developing a Starved Acid Leach Technology (SALT) plant to apply the technology in processing low grade saprolite nickel ore from ANTAM's mining permits in one or more of Halmahera, Pomalaa or other mining projects located within Indonesia.
Subject to satisfactory results of the parties respective due diligence and evaluation, Search will design, construct and operate the plant in Indonesia and ANTAM will commit to a long term ore supply capable of supporting a 30 year mine plan for each Indonesian project.
Subject to studies, the initial supply is anticipated to be approximately 2 million dry tonnes of ore per year. Nickel produced from the plant would be available to ANTAM at market pricing under an off take agreement.
Search has already received approximately 160 kilograms of material from ANTAM's Pomalaa mine to begin testing at the University of British Columbia.
Subject to due diligence satisfactory results, the parties intend to execute definitive agreements within six months.
The SALT plant will be owned and operated by Search. ANTAM will have the right and option to acquire up to a 30% (or a mutually agreed higher) interest in the plant, which option will be valid and subject to exercise for a period of 6 months after delivery by Search of the definitive and bankable feasibility study for the project.
Search is the owner of SALT patents, a process with the potential to economically recover nickel and cobalt from known deposits currently considered sub economic.
Editing by David Mustakim