Adavale to get IUP production on Tapan

By Puspita Maylana Devi

ASX-listed Adavale Resources Limited reported it has completed the acquisition of indonesian miner Perkasa Prima Abadi (PPA), and recently granted an approval to upgrade PPA's IUP exploration to IUP production subject to an AMDAL (environmental) report.

PPA holds an IUP production permit on 198Ha and an IUP exploration permit on 2054Ha tenement called the Tapan project, which hosts a medium to high grade thermal coal resource located adjacent to the village of Tapan, approximately 200km south of the capital Padang," the company said in its quarterly report.

Prior to acquisition, PPA had carried out substantial exploration on the project and had identified a resource of 2.15Mt measured 1.5Mt indicated and 5.4Mt inferred. This initial program was carried out on less than 20% of the concession area.

"Negotiations with potential mining companies, joint venture partners and or buyers that has shown strong interest in the project are on going to move the project into production," the company said, adding that it is also reviewing other projects located between Tapan and Painan to secure a foothold in the West Sumatra coal belt.

Editing by Er Audy Zandri