Asiamet Resources Limited (LON:ARS) told investors that it has successfully concluded long running negotiations with the government of Indonesia (GOI) to amend its existing KSK contract of work to secure long term mining tenure for the BKM copper project in Central Kalimantan.
The company said in a statement that a signing ceremony was held on March 14 and executed documentation was formally received and reviewed on March 26.
It gives Asiamet long term tenure for the project, for up to 50 years, and no divestment is required until after the tenth year of production.
The contract of work sets out a number of key details for the project including royalty rates the fiscal framework, and commitments to prioritise the use of local labour and services.
"Working closely with the GOI to achieve this outcome represents a significant milestone for Asiamet,” said Peter Bird, Asiamet chief executive.
“Signing the amendment to the KSK CoW is a major de-risking milestone for the Company as we head into the project financing and development stage for our flagship BKM copper project.
“The company is firmly of the view that the KSK CoW has the potential to host a district scale pipeline of copper-gold and polymetallic mineral prospects which are yet to be fully understood or appreciated.”
Bird added: “Achieving security of tenure and the fiscal framework for the KSK project significantly enhances our ability to deliver value for all our stakeholders both through the development of the BKM copper project and the discovery of further nearby value creating opportunities such as the recent BKZ polymetallic deposit.
“Asiamet is very committed to building sustainable long-term value for all its stakeholders and looks forward to continuing its work with the GOI and the local communities to build a significant business in Indonesia."