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Asiamet Resources Ltd (LSE:ARS) has announced reductions in capital expenditure (capex) as part of its ongoing efforts to optimize the BKM Copper Project.
The company has identified potential savings exceeding $26 million, with total pre-production capex reductions expected to fall between $50 million and $80 million. This adjustment revises the original estimate of $235.4 million from the 2023 feasibility study.
The reductions were achieved through several measures, including revised equipment selection, reduced earthworks, and simplifications in the process flowsheet. Engineering partners Rexline Engineering and BGRIMM played significant roles in achieving these efficiencies. Further cost reductions are anticipated as the optimization process progresses.
In addition to these engineering enhancements, Asiamet has secured environmental permits for a limestone drilling program at the nearby Rinjen Limestone area. Progress is also being made on the Biomass Power Station project, which is crucial for meeting the project's power requirements.
Darryn McClelland, chief executive of Asiamet, emphasized that the primary focus is on delivering substantial updates to shareholders, starting with the significant reduction in upfront capex. McClelland noted that resizing equipment, revising suppliers, and simplifying the process flowsheet for the staged construction of BKM are major contributors to these savings. He also indicated that further updates are expected, which will detail additional significant capex reductions as the engineering assessments are finalized.
