Finders Resources (ASX:FND) has received a number of additional forestry permits for its Wetar copper project in Indonesia.
They include a further exploration stage forestry permit (“pinjam pakai”) from the Ministry of Forestry for the Kali Kuning and Meron deposits and the final building permits from local government for the main Wetar plant and the neutralisation plant.
In addition, Finders said that members of the Forestry Department are currently completing surveys on site with view to accelerating the issue of a production stage “pinjam pakai” for the project area, which would be an alternative way to get construction work started at Wetar.
“It firmly establishes the production “pinjam pakai” permit as a viable alternative route towards the commencement of construction in the event of further delays in the approval of the spatial plan,” managing director Chris Farmer said.
Finders is targeting issue of the In‐principal Permit (“Izin Prinsip”) in the final quarter of 2012, with the “pinjam pakai” to be awarded once compensation payments are made to Forestry. It estimates the compensation for trees in the project area will be less than A$20,000.
Farmer said the award of the new permits demonstrated the company's ability to work with the Indonesian government at all levels to get permit approval for Wetar.
“The Kali Kuning “pinjam pakai” in particular demonstrates sustained progress in the Forestry Department, assisted by the project being awarded priority status,” he said.
Meanwhile, final gazetting of the government sponsored new Maluku spatial plan is still awaiting the release of maps for signing by provincial authorities.
The spatial plan affects numerous organisations in province, which has resulted in a much slower progress than expected by the local government, Finders said.
“Success in either of these two independent routes will enable the development of the Wetar project to commence,” it added.
Finders has been waiting for the new spatial plan to be approved since early in 2012 so that it can start construction at Wetar.
Once approved, the spatial plan will release much of the Wetar project location from forestry zones.
The Wetar Copper Project comprises two high grade deposits, Kali Kuning and Lerokis, which are located within 3km from the coast.