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Proactive Investors - Asiamet Resources Ltd (LON:ARSA) said it has signed up contractors to plan and execute engineering and procurement of the solvent extraction and electrowinning (SX-EW) plant at its BKM copper project.
An agreement has been made with BGRIMM Technology Group, a Chinese state-owned provider of engineering, procurement and construction services for the mining sector, to precisely design the equipment packages for which cost estimates have already been made in the upcoming feasibility study (FS) update for BKM, as well as providing a detailed cost estimate for the construction of the SX-EW processing plant.
SX-EW is a key part of copper processing, purifying the metals and using electrolysis to produce cathode copper to meet industry specifications.
Asiamet chief executive Darryn McClelland said BGRIMM has already assisted the company’s engineering consultants NewPro with various equipment pricing used in the FS update capex estimate as well as costs for executing the engineering and procurement (EP) services necessary for delivery of the SX-EW plant.
Once the feasibility study update is complete and a positive final investment decision has been made by the Asiamet board, BGRIMM will be engaged to draw up a full EP contract for BKM’s SX-EW plant, including supplying all necessary equipment and coordination with local Indonesian suppliers.
The agreement also states that BGRIMM will help develop the technical construction supervision requirements for the SX-EW plant when moving into the execution phase as well as commissioning services as required.
“Capital cost is a critical component of the feasibility of the BKM Copper project and working with BGRIMM is one of a number of opportunities we have taken to help control cost and mitigate the inflationary backdrop seen in 2022,” McClelland said.
“BGRIMM have a strong track record of delivering cost effective engineering and designs for SX-EW plants of the size we are proposing for the BKM Copper Project and we are very keen to tap into this experience.”
He added that BGRIMM may be involved in future development opportunities that are likely to arise from the broader KSK contract of work.
The company said the SX-EW plant at the BKM project “can be considered a discrete facility with well-defined battery limits therefore is suitable for delivering as an engineering and procurement package”.