Brief History and Geography
History
We hold a Contract of Work (CoW) which was granted by the Government of the Republic of Indonesia (GOI) on February 18th, 1998. Under the terms of our CoW DPM explored for minerals in a 27,420-hectare area located in the North Sumatra and Aceh provinces. Based on Ministerial Decree No. 272 of 2018, the total area explored by the DPM in CoW has changed to 24,636 hectares.
A high grade zinc deposit located in the Sopokomil area in the western region of northern Sumatra was initially drilled in 1997 and provided outstanding assay results. The deposit is known as Anjing Hitam. Over the next 6 years, following the granting of the CoW, further exploration was carried out in the region by DPM with success in both defining a significant resource at Anjing Hitam and also in identifying other local ore bodies that are the subject of further exploration activities. In 2002 we initiated a pre-feasibility study to determine the viability of the Anjing Hitam resource as a stand alone project. The results were positive with an identified resource of 6.3 million tonnes (MT) at 16% Zinc Sulfide and 9.9% Galena (Lead Sulfide). These results provided the incentive for further definition drilling of the ore body and the commencement of a definitive feasibility study (DFS) in September 2003.
The DFS was essentially completed towards the end of 2004 and the outcome was confirmation that the Anjing Hitam resource contained 7.7MT at 16% Zinc Sulfide and 9.8% Galena (Lead Sulfide) with a Zinc equivalent of 23.8%. Anjing Hitam was viable project on its own without inclusion of resources identified in surrounding associated ore bodies.
PT DPM has obtained environmental permits (Environmental Impact Analysis) issued by the Regent of Dairi Regency on October 27, 2005.
On 23 July 2012, The GOI issued the Company’s Borrow-Use Permit that clears the way to commence development and production of the mine. Pre-development planning continues at present.
In 2020, PT DPM obtained an extension of the Forest Area Borrowing Permit for the mining activities of Zinc, Lead, and its associated minerals using the underground mining method covering an area of 53.11 hectares in the protected forest area of Dairi Regency. This extension was granted through the Decision of the Head of the Indonesia Investment Coordinating Board No. SK.295/1/KLHK/2020.