Pyx Resources Limited (LON:PYX) (NSX:PYX), the third largest publicly listed zircon producing mining company globally by zircon resources, is pleased to announce that it has received approval to extract and process 48kt of Premium Zircon during 2023 from its second deposit - Tisma.
The receipt of the Tisma RKAB - Rencana Kegiatan dan Anggaran Biaya 2023 (Work Plan and Budget) approval by the Energy and Resource Service Department from the Government of the Province of Central Kalimantan, is an important milestone in the Company's growth as it expands its ability to produce Minerals Sands from Tisma, which was acquired in January 2021.
The 2023 Tisma RKAB Work Plan and Budget includes:
- Mining operations
- Processing and refining
- Marketing and shipping
- Environment
- Mining safety
- Training; and
- Community development and empowerment.
The receipt of the Budget and Work Plan go-ahead follows the February 2023 granting of an approval for subsidiary PT. Tisma Global Nusantara's (PT TGN) licence for the Tisma tenement for the maximum authorised period of 10 years.
At the end of the 10 years the license can be renewed for additional periods, allowing PT TGN to continue to perform exploration and mining works in the tenement area.
Background on Tisma
PYX Resources acquired the Tisma asset in January 2021 when it entered into a Share Purchase Agreement (SPA) with the shareholders of Tisma Development (HK) Ltd to acquire 100% of its shares.
The Tisma project is a licenced concession covering an area of 1,500 hectares in Central Kalimantan, Indonesia, approximately 50km northwest from the regional capital Palangkaraya. The Company is devoted to the exploration of mineral sands products and the production and export of premium 65.5 grade zircon.
The project has 137 million tonnes of JORC complaint inferred resources with 4% heavy mineral, containing approximately 4.5 million tonnes of zircon in combination with valuable by-products including gold and titanium minerals (rutile and ilmenite).
The terms of the recently renewed permit includes payment of Indonesian taxes and the honouring of other financial obligations of PYX's subsidiary PT Global Nusantara.
A summary of some of the key provisions includes:
- Royalty on Zircon exported of 1.5%
- Fixed rent is payable to the Government of Indonesia at a rate of US$4 per hectare per annum
- Corporate tax of 22% is payable and set by the Government of Indonesia
- Land and building taxes are payable to the local government, at a rate of 0.5% based on taxable sales value
- Environmental obligations, including reclamation bonding and plans, approved by the local government as part of the mine approval process.
Commenting on the receipt of approval for the Budget and Work Plan for 2023, PYX Resources' Chairman and Chief Executive Officer, Oliver B. Hasler, said:
"Firstly, I want to personally thank the Energy and Resource Service Department from the Government of the Province of Central Kalimantan for their dedication and work on our Work Plan and Budget submission.
"Tisma is an important asset in our portfolio and its significant zircon, rutile and ilmenite reserves have the potential to significantly increase our production levels. This will in turn, have a positive effect on our earnings and export income in future years benefiting PYX stakeholders, including the local region and Indonesia as a whole.
"The PYX team remains dedicated and committed to playing an important role in the further development of Indonesia's resources industry and supporting the local communities financially, strategically and sustainably."
About Pyx Resources Limited:
PYX Resources Limited (NSX:PYX) (LON:PYX) is a global producer of premium zircon listed on the National Stock Exchange of Australia and the London Stock Exchange. The Company's flagship asset is the Mandiri mineral sands deposit, located in the alluvium sediment rich region of Central Kalimantan, Indonesia. Boasting the world's 5th largest producing deposit of zircon, PYX is a large-scale, near-surface open pit operation in production since 2015 and with exploration to date validating the presence of additional Valuable Heavy Minerals such as rutile, ilmenite among others within its mineral sands.
Image source: https://pyxresources.com/
