Awarded Production License Extension
Sydney, June 29, 2020 AEST (ABN Newswire) - PYX Resources Ltd (
NSX:PYX), is pleased to announce that it has received notification from the Central Kalimantan Provincial Government that after approval from the Energy and Mineral Resources Department of Central Kalimantan, the Company's application for the extension of the Production Operation Mining Activities IUP license has been granted for the maximum authorized period of 5 years, after which the license can be renewed for additional periods of 5 years. The Production and Operation IUP license allows PT Investasi Mandiri to carry out production operations including construction, mining, processing and refining, transportation and sales activities.
The terms of the renewed permit, including payment of Indonesian taxes and the honouring of other financial obligations of PYX's subsidiary PT Investasi Mandiri, are set out in the IUP-OP. A summary of some of the key provisions is provided below:
- Dead rent is payable to the Government of Indonesia at a rate of US$4 per hectare per annum;
- Royalty on Heavy Mineral Sands produced is 1.5%;
- Corporate tax of 25% is payable and set by the Government of Indonesia;
- Land and building taxes payable to the local government are applicable, at a rate of US$0.53 per hectare; and
- Environmental obligations, including reclamation bonding and plans, approved by the local government as part of the mine approval process.
Commenting on the Company's tenement license approval, PYX's Chairman and Chief Executive Officer Oliver Hasler, said:
"PYX Resources is extremely pleased to report receipt of the notification for the renewal of the IUPOP license for the Mandiri deposit.
This is a major milestone for the Company, extending the term of the license, and thus enabling PYX to continue its critical exploration and development expansion activity, at a time when the premium zircon market supply is forecasted to move into deficit from this year onwards.
The diligence and hard work of our team, and the quick response time of Indonesian government departments, officials and stakeholders is greatly appreciated."
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.
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