Tag Archives: Indonesia

Volvo CE introduces first electric machines to Indonesian market

Volvo Construction Equipment is continuing its rollout of lower emissions construction equipment across Asia, with the introduction of the first electric machines in Indonesia.

Two models are now available in the country after being presented to customers at Indotruck Utama’s Inspire 2023 event in September. The launch follows the introduction of other electric machines in China, South Korea, Japan and Singapore, and bodes well for mining-class electric machines arriving in the next decade.

The first two electric construction machine models from Volvo CE in Indonesia are now available for purchase, with the company noting there is already strong interest in the ECR25 Electric compact excavator and the L25 Compact wheel loader, particularly from customers in the general construction, agriculture, material handling and livestock industries.

The ECR25 Electric compact excavator is a 2.6-2.8 t capacity machine with a 22.3 kN breakout force. It has an onboard charger for general charging, an external quick charger (optional for indoor/outdoor specifications), and a 20 kWh battery array, allowing for 3-4 hours of work per charge.

The L25 Electric compact wheel loader features a 2.1-t payload and a maximum speed of 20 km/h. The machine comes with a 40 kWh battery pack and is expected to deliver 6-8 hours of work per charge. Both machines offer near-silent operations and zero emissions while enhancing operator comfort thanks to a working environment that removes the vibrations and noise associated with diesel machines.

To complement the existing models, in 2024 Volvo CE is planning on expanding its electric portfolio with the launch of the L120H loader, which is built with state-of-the-art technology to increase productivity and profitability. This commitment from Volvo CE to extend its electric machine range will open new opportunities for customers in the mining and aggregates sectors to reduce their carbon footprint, it says.

Volvo CE understands that customers are setting their own environmental targets to reduce carbon footprints to accelerate the green transition. With this in mind, it is working in partnership with customers, creating bespoke step-by-step programs to help organisations achieve their unique climate goals.

“We’ve seen a significant amount of interest, excitement, and anticipation from our customers in Indonesia, so bringing the first electric machines to market is a major milestone for us,” Gerrit Lambert, Head of Market Indonesia, Volvo CE Asia, said. “Already we’re seeing high interest from customers thanks to the machines’ key benefits, such as the fact that they are CO2 free and offer a lower cost of ownership than traditional machines.”

Volvo CE says it is committed to ensuring its clients are fully prepared for the introduction of electric machines in Indonesia. To facilitate this, it conducted several intense safety and service training sessions with dealer partner, PT Indotruck Utama. This training not only surpasses all regulations required by the Indonesian government, but also adheres to European standards. The company is now embarking on a series of demonstrations nationwide with the new machines, so customers get a detailed look at the features and benefits they deliver.

Thiess turning autonomous mining opportunities into reality

Thiess may have deliberately started small with autonomy, however, 10 years into its journey, the company is now being recognised as a mine automation leader in the ever-competitive mining services space.

Whether it is drilling, dozing or haulage, Thiess has plenty of autonomy expertise to offer.

The company started off in 2013 with maintenance and service work on the autonomous haulage fleet a major producer had assembled at its iron ore operation in the Pilbara. This has since broadened out to semi-autonomous tractor system (SATS) operations at major coal mines in Australia, autonomous drilling advances using Epiroc and Caterpillar platforms and, most recently, autonomous haulage and drilling operations at Pembroke Resources’ Olive Downs Complex greenfield operation in Queensland.

Trent Smith, Head of Autonomy and Operations Technology at Thiess, says the company seeks to involve itself early on with autonomy projects to ensure benefits can be realised.

He explains: “We like to help identify the opportunity for automation, which initially involves answering two big questions: is the application suitable? And does it deliver a financial benefit to the project? If there are positive answers to both questions, we try to work with those potential clients on how to bring the vision to life.”

Thiess’ involvement in this process is extensive, looking at network options, OEM selection, the “people element” and more, according to Smith.

“Our strategy was a bit different to others, where, aside from the work at our first autonomy project in the Pilbara, we started with small pilot projects on drills and dozers,” he told IM on the side lines of IMARC 2023 in Sydney earlier this month. “This enabled us to establish some solid foundations, understand the significance of the required changes, understand what the key enablers like networks were and put support models behind those aspects.”

To date, the mining services provider has worked closely with OEMs Epiroc and Caterpillar on modifying their autonomy platforms to fit its clients’ operations to improve safety and efficiency.

“With Caterpillar, we were able to take an emerging technology platform like Cat® MineStar™ Command for drilling and ensure it was fit for purpose for the coal environment we were planning to deploy it in.

“With Epiroc’s solution, we took a mature and proven product from the iron ore environment – equipped mainly for single pass, vertical drilling in competent ground with big and open drill pads – and tailored it for a coal application. This application required the introduction of autonomous rod changing and angle drilling for drilling in varied ground within tighter working areas.

“We worked hand-in-hand with Epiroc to understand the complexities of translating the solution for this environment, utilising all of the on-board data in the early trial stages and filtering that down to identify areas of waste and opportunity that could be used by the OEM and ourselves to realise an improvement in performance within that new environment.”

This evidently worked, with the companies, earlier this year, achieving the significant milestone of drilling more than one million lineal metres at the Lake Vermont coal mine in Queensland.

Pembroke Resources’ Olive Downs Complex has become the world’s first mining operation to deploy Command for hauling and Command for drilling solutions simultaneously

Thiess is also expecting to later this year reach the same autonomous drilling milestone with Cat’s Command for drilling platform; this time at a major coal mine in New South Wales.

The company has also helped achieve an industry first at Pembroke Resources’ Olive Downs Complex, with it becoming the world’s first mining operation to deploy Command for hauling and Command for drilling solutions simultaneously.

This assignment, which moved from concept to implementation of autonomous trucks and drills within a matter of 18 months, will ultimately include the deployment of 21 haul trucks (15 Cat 794 ACs and six Cat 793Fs) and three drills (Cat MD6310s) fitted with autonomous technology. Additionally, Thiess has established a private LTE network on Pembroke’s on-site communication infrastructure, enabling the safe operation of more than 85 connected assets within the autonomous operating zone. It has also upskilled more than 280 team members to, Thiess says, support the delivery of autonomous operations at Olive Downs to enable improvements in safety, operating hours, cycle efficiency and cost.

There is potential to add Command for dozing at Pembroke Resources’ Olive Downs Complex in future years, according to Smith.

“We have built the network and control room with the anticipation that this will be used,” he said. “We are already the first company in the world to have all three Caterpillar autonomy products running at operations, but Pembroke Resources’ Olive Downs Complex would be the first operation in the world to have all three Cat autonomy products operating at one mine.”

Thiess now has six autonomy projects out in the market, all of which are performing well against industry automation benchmarks, according to Smith, who says this capability is being recognised within the mining company community and OEM space.

The company has already announced its first automation project outside of Australia – at a coal mine in East Kalimantan, Indonesia, where it will deploy autonomous drilling operations – and Smith says the company is exploring further autonomous drilling opportunities in Latin America.

As well as continuing to engage with the wider OEM market on automation options, Thiess is working on different automation applications for existing products.

“With the SATS Command for dozing product, for instance, we are looking to take the platform and work with Caterpillar to move it towards a rehabilitation application,” Smith said, referencing the Thiess Rehabilitation business the company launched last year. “The requirements in mine rehabilitation are somewhat different to standard dozer push and stockpile applications, with multi-push vectors and the ability to potentially control several small-scale projects from one centralised hub.

“This is an example of where we work with an OEM, bring our knowledge of working with the product, identify a new application for the product, and then lay out what new set of capabilities need to be addressed to meet the requirements and fulfil that market opportunity.”

The company has a track record of proposing and advancing such autonomous dozing opportunities in certain niche applications, Smith said, adding that it recently achieved the 10 million cubic metres push mark with SATS.

The first rehabilitation application for SATS could end up being at a project in central Queensland – a project the Thiess Rehabilitation team started work on last year.

Thiess recently achieved the 10 million cubic metres push mark with SATS

Against this advancing autonomy backdrop, Smith says the company continues to be asked about combining the “decarbonisation” and autonomy pieces of the mine operating puzzle, with a staged approach typically being recommended.

“At the moment, these two (autonomy and decarbonisation) are a little bit separate, but they will converge at some point,” he said. “I imagine artificial intelligence and predictive capabilities will play a role in that – evaluating when the truck might run out of charge, when is best to pull that truck out of service for a 30-minute fast charge, etc.

“What I would say is if you have taken a step in either direction (autonomy or decarbonisation) already, you are well placed for this convergence.”

Smith offered up one last piece of advice to any company looking to take its next automation step: “Don’t forget the people and process part.”

He explained: “Most organisations know how to deliver a technology project, but I think the real value in automation is bringing the people and process along with that. Automation is a business transformation.

“We worked with Pembroke Resources’ at their Olive Downs Complex to ensure the appropriate change management process to enable automation was implemented across all business functions. Each function was reviewed to understand what needed to change to bring in automation and create a cohesive environment.

“It’s already starting to pay off at that project, where we exceeded our target of 6,500 annualised hours within two months of commencing autonomous haulage operations.”

Thiess-Batam

Thiess ramps up truck rebuilding capability in Indonesia

Thiess says it has demonstrated commitment to expanding its truck and component rebuilding capabilities on a large scale with the execution of a lease for a new facility at Kabil Integrated Industrial Estate on Batam Island, Indonesia.

Thiess has an extensive fleet of mining haulage trucks in Indonesia and Australia, including more than 650 that will reach the end of their service life in the next eight years and require either replacement or rebuilding, it says.

Thiess Group Executive Chair and CEO, Michael Wright, said: “The new truck rebuild facility at Kabil Estate is an integral part of a strategic initiative to equip Thiess with better control over our asset replacement and rebuild program, and deliver improved financial and sustainability outcomes for our clients and shareholders.

“We are pleased to have secured this site that is centrally located between our Indonesian and Australian operations, with world class facilities and transport and logistics services – the professionalism and support from Kabil Estate has enabled swift mobilisation and we are on track for first production by December 2023.

“This rebuild facility also establishes a platform for Thiess to explore decarbonisation and alternative fuel technologies, as well as the opportunity to provide these services for our clients in the future.”

Kabil Integrated Industrial Estate Group Chairman, Kris Wiluan, said: “We are delighted to welcome Thiess as a valued addition to Kabil Estate. With state-of-the-art infrastructure, strategic location, and a focus on sustainability, we look forward to providing Thiess with a competitive advantage in its operations in Indonesia and Australia while supporting its ecofriendly initiatives.”

Thiess Batam Engineering General Manager, Daryl Albury, said: “Our new facility at Kabil Estate will enable Thiess to reset the usage clock on up to 160 trucks per year to zero hours, through a complete overhaul, including all major components, a full refurbishment of electrical systems and returning all worn components to original equipment manufacturer specification.

“The zero-hour rebuild is expected to extend the service life of each of Thiess’ Caterpillar mining trucks by a further 40,000 to 60,000 hours.”

Thiess Group Executive Assets, Technical Services and Technology, Ramesh Liyanage, said: “Thiess’ reputation for certainty of delivery is built on our expertise in asset management and fleet maintenance, with component rebuild centres across our operations for decades.

“This new truck rebuild facility is the next step up in the evolution of our capabilities and service offerings.”

Thiess’ existing rebuild facilities in Perth, Brisbane and the Hunter Valley in Australia, and in Balikpapan in Indonesia, have a track record in rebuilds and refurbishments of trucks, dozers and components for the company’s fleet of mining assets, as well as limited fee-for-service rebuilds of client assets.

BME formulates plan to tackle floc in blasting emulsion production

Omnia Group mining division company BME has been sharing its leading technical expertise at the 12th World Conference on Explosives and Blasting recently held in Dublin, Ireland, with a solution to eliminate ammonium nitrate (AN) coating agent residue – also called floc – during the production of emulsion causing a stir, it says.

Hosted by the European Federation of Explosives Engineers, the three-day conference drew over 500 delegates globally from among explosives users, manufacturers, drilling equipment operators, researchers and professionals involved in mining and construction.

Included in the Technical Development theme of the conference, the aforementioned paper was written and presented by Garfiansyah Rayes, Berbudi Utomo and Ngisomuddin of BME’s Indonesian office.

“We chose this topic because floc is a common challenge for emulsion producers in southern Asia, and compromises the performance of the final product,” Rayes, who is Technical Service Engineer at BME Indonesia, said. “The presence of floc within the oxidiser mixture poses significant risks to various aspects of our operations, including production, product quality, safety, environmental impact and customer satisfaction.”

For these reasons, the solution described in BME’s presentation raised considerable interest among conference delegates – as it could help to solve various related challenges, he noted. The methodology that the authors explain is not common in Southeast Asia in general, although it is well used in Europe and the US.

“The emulsion manufacturing process involves the blending of water, AN prill with coating agent, and other chemicals,” he explained. “In this process, a colloidal dispersion – or residual foam – forms on the surface of the melt tank, consisting of small particles, droplets and bubbles.”

If allowed to continue through the manufacturing process, the residual foam can affect final emulsion quality and performance – including reduced the value of velocity of detonation, according to BME Operations Manager, Ngisomuddin.

“To prevent this issue, the foam that accumulates on the surface of the transfer tank requires additional handling,” he said. “Previously, plant personnel had to manually skim off the residual foam, which raised safety concerns among customers. Furthermore, the collected foam must be treated as B3 hazardous waste by a licensed service provider to ensure responsible and legally compliant disposal. This process adds to the overall cost of emulsion production.”

To address the problem of floc, BME has developed a dispersal method that involves heating the AN coating agent residual to its melting point in the oxidiser tank. This causes the floc to dissolve into the oxidiser, resolving the issue of residue build-up.

“We tested how a plant could be re-engineered to eliminate floc generation during emulsion production, and researched two techniques,” Ngisomuddin said. “The technique we selected for implementation was melting with dispersal heat, followed by centrifugation.”

Rayes explained that, while dispersal heat is an effective technique for breaking down floc, it may not be sufficient to eliminate the residue. The melted floc may remain suspended in the emulsion and, if not removed, can potentially lead to issues in downstream processes.

“To overcome this condition, a high-speed centrifuge was used to separate the larger floc particles on the surface of the mixture,” he said. Through the process developed by BME, Rayes said that between 16-17 t of waste per year has been eliminated.

Tom Dermody, International Technology and Field Services Manager at BME, pointed out that the innovative solution to deal with floc in emulsion production was also strongly driven by BME’s environmental, social and governance commitment. With its strong in-house technical capability, the team aimed for ways to improve the product while making it safer to handle and reduce its potential impact on the environment.

“The result of this work is that our people are not exposed to hazardous gases, for instance, and we reduce the waste that the process produces,” he said. “We are pleased to be able to share these developments in the interests of supporting the progressive improvement of practices in the industry.”

BME recently finalised a joint venture agreement with Multi Nitrotama Kimia (MNK), Indonesia’s leading explosives producer. The two companies have already successfully partnered in a five-year contract for blasting services at a mine in Kalimantan, which has led to the commissioning of BME’s first mobile process units and emulsion plant outside of the African continent.

PROK opens specialist facility in Indonesia

PROK, a leader in conveyor equipment manufacturing, has announced the official opening of its specialist facility in Surabaya, Indonesia.

This purpose-built facility reinforces PROK’s commitment to providing industry-leading experience, expertise and service for conveyor equipment to local customers, PROK said.

The Surabaya facility is specifically designed to provide conveyor pulley refurbishment services to mining companies located in Southeast Asia.

One of the key advantages of PROK Surabaya is its strategic location, which enables the global refurbishment and service teams to be in close proximity to major mining operations. This proximity allows for local engineering support, responsive operational and maintenance assistance and round-the-clock service and emergency support.

PROK has a long history in Indonesia, having been a key supplier of conveyor equipment and services to the region for many decades.

PROK General Manager, Wade Guelfi, said the new facility was initiated in partnership with local customers.

“The facility makes sense for our local customers in Indonesia. Our strategy is to be close to our customers and this is another example of this commitment.

“In order to bring this vision to life we worked closely in collaboration with our customers in the region. They were obviously keen and interested as this facility will bring lasting value to their operations. It means they have an OEM on their doorstep to help maximise their conveyor uptime.”

The Surabaya facility boasts a range of conveyor products and services that meet international quality standards, with the capacity to refurbish pulleys weighing up to 20 tons.

PROK Surabaya operations benefit from the support of PROK’s global network of specialist conveyor facilities and production teams based in Australia, the USA, Canada, Chile and Brazil.

Austin Engineering delivers Indonesia-made truck trays into Pilbara region

Austin Engineering Limited has completed the first shipment of fully built and assembled truck trays from its Indonesia facility in Batam, which have been delivered directly into Western Australia’s Pilbara mining region.

The delivery comprised four truck trays that were shipped from Indonesia via Singapore into Port Hedland and then onto the customer site.

Austin recently completed a major expansion and upgrade of its Indonesian facility, which has doubled its manufacturing capacity to address increased demand.

The larger Indonesian facility is allowing Austin, it says, to mitigate the impact of ongoing supply constraints in Western Australia, particularly for skilled fabrication labour, which has been a limiting factor for production.

Alleviating these supply constraints has enabled the company’s local Western Australian facility to maintain more even operational output in line with local labour availability while ensuring Austin’s customers continue to have access to products, it said.

A return of freight costs to pre-pandemic levels has also enabled Austin to augment the shipping of sub-assemblies into Perth for final build (which has been standard practice for some time) with the delivery of full truck trays direct to the Pilbara.

Austin said: “The ability to ship directly from Indonesia to Port Hedland has the added benefit of removing the need for road haulage from Perth to client mine sites in the Pilbara. A reduction in overall transport and logistic requirements has safety, environmental and cost benefits. Specifically, a reduction in road haulage is favourable from a road safety and emissions reduction perspective.”

Further direct deliveries into the Pilbara are being planned with customers to augment Austin’s Australia-based supply, it said.

Austin CEO and Managing Director, David Singleton, said: “We are extremely pleased to see our design and manufacturing strategy starting to work in sync in the Asia Pacific region. The expanded facilities in Perth and Indonesia are allowing more flexibility from a manufacturing and delivery point of view. We have previously shipped truck trays, buckets and other mining equipment directly into Queensland, but it is the first shipment we’ve completed direct to the major mining centre of the Pilbara, and we expect this supply route to become a regular feature of our integrated supply chain.

“We remain committed to Australia as a manufacturing location, exemplified by our two factory units in Kewdale, Perth along with our two operating sites in Queensland. In addition, the majority of the steel we used in Australia and Indonesia is sourced from Australia.“

Macmahon Holdings extends stay at PT Agincourt’s Martabe mine

Macmahon Holdings says it has extended its appointment by PT Agincourt Resources (PTAR) as the mining contractor for the Martabe gold project in North Sumatra, Indonesia.

Macmahon has been working to support PTAR at the Martabe mine site since 2016 and, in that time, its workforce on site has grown to over 600. The scope for Macmahon on the next stage of development will involve open-cut mining activities including drilling, loading, hauling and mine site development.

The contract extension commences on April 1, 2023, for a seven-year period with the option to extend for a further two years. It is expected to generate revenue of A$350 million ($234 million) in the first seven years, adding to Macmahon’s secured order book.

Macmahon will continue to integrate safety, environmental and social considerations into its operations at Martabe and looks forward to continuing this work in partnership with PTAR and
the local communities on all these areas, it said.

The contract value of the successful extension at Martabe and other recent contract awards in financial year 2023 total approximately A$2.5 billion, which exceeds Macmahon’s financial year 2023 order book run-off. As a result, the company is better positioned to strategically pursue low-capital intensity opportunities.

Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to be re-appointed by PTAR as the mining contractor for its Martabe gold project and believe this reflects the significant efficiencies delivered on the project. Since 2016 we have built, and continue to build, a strong relationship with the PTAR team and look forward to being part of the further successful development of the mine. I would like to thank our Macmahon team at the Martabe project in Indonesia. Their continued dedication and support are what makes this project successful.”

Freeport-McMoRan adds Grasberg to Copper Mark-approved sites

Freeport-McMoRan has achieved the Copper Mark at all 12 of its copper producing operations globally after adding its 48.76%-owned Grasberg mine, in Indonesia, to the lineup.

The Copper Mark is an assurance framework to promote responsible production practices for copper, built on the vision of improving practices across the whole industry over time. Its participants commit to fully meet the Copper Mark’s standards within two years of signing up to the assurance process and to continuously strengthen practices as these standards continue to be updated to align with increasing stakeholder expectations on environmental, social and governance (ESG) issues.

The Copper Mark seeks to promote transparency and accountability of its participants in general and especially in the case where a participating site manages complex issues that have significant environmental or social impacts. PT-FI Grasberg, the operating entity for Grasberg, owned 48.76% by Freeport and 51.24% by PT Inalum and PT Indonesia, operates a riverine tailings management system which the Copper Mark recognizes as one such issue.

In addition to the Copper Mark advances, Freeport’s two primary molybdenum sites, the Climax and Henderson operations in USA, were awarded the Molybdenum Mark.

The extensive, independent on-site assessment of PT-FI Grasberg confirmed the site’s conformance with the current Copper Mark expectations and standards, including the Interim Tailings Guidance, which requires all participants to implement the Global Industry Standard for Tailings Management, where applicable, and also specifies the expectations for riverine, ocean and lake tailings systems.

The Copper Mark is also developing additional guidance for any participating sites identified as having significant long-term environmental or social impact issues. Once finalised, PT-FI Grasberg will be required to demonstrate conformance with these additional requirements through onsite third-party assurance.

Executive Director of the Copper Mark, Michèle Brülhart, said: “We congratulate Freeport-McMoRan for achieving the Copper Mark at all of its copper operations globally and we are thrilled to see the company continue its commitment to demonstrating its responsible production practices with its two primary molybdenum sites to receiving the Molybdenum Mark.

“We recognise the significant impacts caused by the riverine tailings system at PT-FI Grasberg. During extensive discussions in 2021, the Copper Mark considered available standards and guidance on how to manage riverine, ocean and lake tailings systems. We believe it is essential to engage with copper producers operating in complex environments with a view to increase transparency and provide independently verified information on how sites prevent, minimize and remedy negative impacts.”

Austin Engineering’s ultra-lightweight High Performance Tray finds its market

Austin Engineering says it has received orders for, or been notified of award of, in excess of 210 truck tray orders in the December 2022 to January 2023 period, improving the company’s order book and revenue outlook for the second half of 2023.

The orders over the period represent approximately 40% (approximately 500 expected in the 2023 financial year) of orders received in a normal full year.

These orders have come from multiple customers across the globe and will be manufactured and delivered from Austin’s four operating sites located in the Asia Pacific (Australia and Indonesia), North America (Wyoming) and South America (Chile), it said.

Production of the trays is either already underway or planned to commence shortly, with most of the deliveries scheduled through 2023 but with significant revenue to be booked in the second half of the 2023 financial year.

Approximately 120 of the truck tray orders are for the recently launched, ultra-lightweight High Performance Tray (HPT). The HPT can, according to Austin, deliver significant additional ore per year due to its lighter weight and increased volume efficiency. In an early application, the truck body design could deliver an additional 45,000 t/y of ore per tray compared with previous comparable truck trays developed by Austin.

Austin expects the market interest in the HPT to continue due to its attractive design and operational benefits, it said. Austin has received several proposals to tailor the design for different geographies, suggesting it will become a mainstay in the company’s global product portfolio, complementing Austin’s existing four truck tray types.

Austin has previously announced manufacturing capacity expansions to deal with an anticipated surge in demand, which has now occurred. The expansions, now largely complete, were in Indonesia, Chile and in Western Australia, where a specialised bucket facility for Austin and Mainetec buckets has been commissioned.

Austin CEO and Managing Director, David Singleton, said: “The increased orders reflect an increased win rate in contracts across the business aided by the release of improved product designs such as the HPT, which is receiving significant market interest because of its attractive operational efficiencies.

“We had confidence to commit capital to capacity expansions at some of our major manufacturing sites, namely Indonesia, Chile and Australia. We have also invested in upgraded equipment in the workshops to enable efficiency and quality improvements across our product lines.

“Pleasingly, the capacity expansions have aligned with increased orders ensuring customer delivery timeframes can be maintained. The continuing and increasing strength in the order pipeline suggests that high utilisation levels in all jurisdictions will continue.

“We believe that our commitment to product design and development, our focus on cost control and developing capacity to meet our mining customer needs is driving this improvement in workload.”

Asiamet engages BGRIMM for SX-EW plant engineering and procurement work at BKM

Asiamet Resources Limited says it has signed a Memorandum of Understanding (MoU) with BGRIMM Technology Group (BGRIMM) in relation to the engineering and procurement of the solvent extraction and electrowinning (SX-EW) plant for the BKM copper project processing facility in Indonesia.

BGRIMM is a leading Chinese engineering, procurement and construction (EPC) group providing services to the mining industry worldwide.

The MoU will see the two companies, alongside Asiamet’s consulting engineer, NewPro Consulting & Engineering Services Pty Ltd, work on the detailed design information for all equipment packages that BGRIMM has provided cost estimates for as part of the current BKM copper project feasibility study update.

BGRIMM will also complete a detailed cost estimate for an EPC Technical Supervision scope of work for the project’s SX-EW processing plant, which will be used in the FS update capital cost estimate. Upon successful completion of this update and a positive final investment decision by the Asiamet Board, the company will engage with BGRIMM on the provision of a complete engineering and procurement service contract for the SX-EW plant. This will include the supply of all necessary equipment for the SX-EW plant and coordination with suppliers of materials from within Indonesia.

Asiamet will also work with BGRIMM to develop the technical construction supervision requirements for the SX-EW plant when moving into the execution phase as well as commissioning services as required.

The SX-EW plant is a critical component of the BKM processing facility as it delivers the processes of metal purification and copper metal production, Asiamet said. It can be considered a discrete facility with well-defined battery limits, therefore is suitable for delivering as an engineering and procurement package.

Darryn McClelland, Asiamet CEO, added: “BGRIMM have already assisted our engineering consultants NewPro with various equipment pricing used in the FS update capital expenditure estimate as well as costs for executing the engineering and procurement services necessary for delivery of the SX-EW plant.

“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. 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. Asiamet looks forward to developing a strong working relationship with BGRIMM through involvement in the development of the BKM copper project, along with future development opportunities that are likely to arise from the broader KSK Contract of Work.

“Final discrete elements for the delivery of the updated Feasibility Study are nearing completion and we look forward to delivering on this in the near term and critically presenting a project with overall robust economics and attractive cashflow generation.”

A 2022 feasibility study on BKM outlined a maximum 4.5 Mt/y treatment rate from a nine-year heap leach SX-EW operation.