AKD Limited reports progress on Jogja ironsands project deal

Australian firm AKD Limited said Wednesday Indonesian state-owned steel maker PT Krakatau Steel had completed a first draft offtake agreement with PT Jogja Magasa Mining (JMM), the current owner/manager of the Yogyakarta ironsands ? pig iron project located in Yogyakarta Province.

Krakatau Steel intends to be an offtake partner for the pig iron produced from the project that would provide the basis for guaranteed sale of a substantial portion of the pig iron produced in Yogyakarta.

Further discussions to finalise the agreement were scheduled for the end of January, AKD said in a statement to the Australian bourse.

AKD has reached an agreement with JMM and Nusantara Energy Ltd (NEL) whereby it can acquire a 70 percent interest in the project subject to the completion of certain performance hurdles (resource definition & bankable feasibility).

AKD has estimated that it would need A$2 million to complete detailed feasibility study of the project, which is believed to contain titaniferous magnetite over a 22-km long and 1.5-km wide strip of coastal plain in Jogjakarta. (Robert)