Mining issuer PT Bumi Resources Minerals Tbk. (BRMS) reclassified US$123 million in business development project funds after obtaining an exploration permit. Director and Investor Relations of BRMS Herwin Hidayat explained that the listing of assets worth US$123 million by PT Linge Mineral Resources (LMR) was not a new acquisition but only a change in the asset account from a Business Development Project to an Exploration and Evaluation Asset.
“We have recorded on the company’s balance sheet in the form of a business development project since the end of 2020, it is an investment made to look for gold mining prospects in Sumatra, especially in Aceh. In semester II/2021, we just received a permit from the government and the clarity of the asset itself, related to data and resource reserves, we reclassified it, it remains the same on the balance sheet, in the asset column, but now it has turned into an exploration asset,” he explained, Thursday ( 30/12/2021).
LMR itself is the holder of the Linge Abong gold mining concession covering an area of 36,420 hectares in Aceh Province. BRMS President Director Suseno Karmadibrata hopes to develop the Linge Abong project as soon as possible. “The prospect of gold in Linge Abong can add significant value to our shareholders, as a follow-up to the development of our gold mining projects in Palu and Gorontalo in the next two years,” he said in a press release. This asset reclassification is carried out in the disclosure of information after BRMS has obtained an exploration permit from the government, so that it can provide details on the amount of reserves and resources of the mining project. Meanwhile, in this project, the total gold resources that can be explored are 6.8 million tons and the reserves are 2.32 million tons.