3D Resources shifts focus to short term coal project
Monday, July 30 2012 - 02:27 AM WIB
Australia-listed minerals explorer firm 3D Resources Ltd unveiled its plan to shift focus to short term project on coal due to Indonesian new regulation requiring foreign miners to divest stake after 5 years in operation.
The company in its quarterly report said that the focus has shifted to mainly short term projects that can be ?mined out? within a 5 year timeframe before the divestment requirements under the new laws come into play.
?In addition, greater focus is being given to projects containing high quality coals that are not affected by the export restrictions that these new laws have also introduced for a range of unprocessed minerals,? it said.
?Our company has taken a ?low risk? approach to assessing projects and is avoiding those projects that require high capital investments or acquisition costs, or projects that are likely going to take several years to come to fruition, but instead are looking for a project that can return investment quickly and allow the company to establish itself fully into Indonesia.?
Earlier the company announced it had executed an MoU to acquire 100% stake in PT Aries It Indo which owns a coal mining project in Southern Kalimantan.
PT Aries owns Exploration and Operation Production Permits covering 575.9ha and 153 ha respectively in South Kalimantan with well established infrastructure including haul road and jetty, the company said.
Existing drill data within the area suggests potential for developing 2 seams with 3:1 up to 7:1 stripping ratios with coal CV of +6,000kcal/kg thermal coal.
Editing by Adianto P. Simamora