Sumatra Copper completes Pinjam Pakai requirements

By Andi Istrada

ASX-listed Sumatra Copper & Gold plc recently announced it has successfully completed all requirements requested to apply for the final ?Borrow and Use" permit or Pinjam Pakai for its 100%-owned Tembang Gold-Silver Project in southern Sumatra.

These requirements include the completion of the baseline survey for the Borrow and Use area including the forestry contained therein; the adjustment and finalization of the Forestry Rehabilitation Work Plan which is dependent on the baseline survey; the appointment of a Forestry Policy Advisor, and internal Sumatra Forestry Officer, and the notarization of all formal documents for the Pinjam Pakai Permit.

"Sumatra will now lodge all notarized documents and make the compensation payment to the Forestry Department for any trees that may be used during the Borrow and Use period before lodging all documents with the Forestry Department," the company said.

Sumatra is targeting late in the first Quarter of 2013 to secure the grant of the final Pinjam Pakai. This will clear the way for financing and development of the Stage 1 Tembang Project to proceed, which involves total pre-production capital of US$40 million and is scheduled to produce 30,000 oz per annum of gold and 200,000 oz per annum of silver at a forecast cash cost of US$487/oz, scheduled to commence in 2014.

Stage 2, which is planned to commence in 2015, will see production expanding to 50,000 oz per annum of gold and 500,000 oz per annum of silver.

Editing by Er Audy Zandri