PT Bumi Resources Minerals Tbk (“BRMS” or “the Company”) today reported that on the 17th of April 2014, the Company’s subsidiary, PT Dairi Prima Mineral (“Dairi”) signed an Engineering, Procurement & Construction (“EPC”) Contract with the China Nonferrous Metal Industry’s Foreign Engineering & Construction Co, Ltd (“NFC”) to develop the Dairi’s zinc & lead project in North Sumatera. Such EPC contract is the follow up of the general partnership agreement signed by both parties in October of last year.
NFC plans to construct infrastructures & facilities that can process up to 1 million tons of ores per year at the Dairi’s mine site. The construction is expected to be completed in 42 months, by end of year 2017. As reported in October of last year, NFC will assist to arrange 85% of the funding required to develop Dairi’s zinc & lead project. The total fund required will be disclosed soon.
Mr. Suseno Kramadibrata, the CEO of BRMS, said “This is another positive achievement by our Company. We expect to monetize the zinc and lead reserves operated by Dairi by end 2017 and add value to the respective shareholders. We also appreciate the support from the representative of the People’s Republic of China Embassy In Indonesia who attended the signing ceremony last Thursday.”
The signing ceremony was also attended by Mr. Ari Hudaya, the President Commissioner of BRMS, and the several prominent domestic vendors and construction companies. The representatives of the Bank of China, ICBC (Industrial & Commercial Bank of China), and SINOSURE (China Export & Credit Insurance Corporation) were also present at the event.
Dairi is 80% owned by BRMS and 20% owned by PT Aneka Tambang Tbk. Dairi currently operates the zinc & lead mine site in North Sumatera with the total reserves of 11 million tons of ore and the resource size of 25 million tons of ore. Such mineral reserve also have relatively high grades of 11.5% (zinc) and 6.8% (lead).
