Altura expands Tabalong coal project
Tuesday, March 27 2012 - 01:39 AM WIB
Australian-listed firm Altura Mining Limited said that it had reached an agreement to acquire a neighboring IUP which will expand the current tenement holdings by 74% in its Tabalong Coal Project located in South Kalimantan.
The company said in a press statement on Tuesday that the project expansion also marked the introduction of a well respected Indonesian business entity, PT Unitras Jaya Investama (UJl). Upon completion of the transaction UJI will hold 30% of the Tabalong Coal Project with Altura holding the remaining 70% with each partner funding their proportion of the coal mine development.
The new IUP is held by PT Suryaraya Pusaka (SP) and consists of 3,250 hectares of highly prospective coal ground located some 15 kilometere east of the main Tabalong Project. The IUP is approved for Operation Production for a period of 20 years from 31 December 2009 with a further 10 year extension option. Forestry Permits have been lodged and are currently following the approval process.
The new expanded Tabalong Coal Project will comprise three (3) IUPs with PT Suryaraya Permata Khatulistiwa (SPK), PT Suryaraya Cahaya Cemerlang (SCC), which is split into Blocks 1 and 2, and PT Suryaraya Pusaka (SP). The Tabalong mining permits now total 7,661 hectares comprising 1,864 hectares in SPK plus 2,547 hectares in SCC and a further 3,250 hectares in SP.
The geological setting of SP is similar to SPK and SCC and is located in the Tanjung Formation which is noted for its higher energy thermal and metallurgical coals. Exploration to date in SP consists of approximately 45 shallow drill holes concentrated in the south-west corner of the tenement.
The shallow drilling has been conducted in a 500 hectare section of the IUP with the remaining 85% of the IUP relatively unexplored. Drilling to date has located several coal seams however there are no JORC compliant resources calculated as yet.
The expansion of the Tabalong Coal Project and the establishment of a local partnership have been key targets for Altura. The expanded Tabalong Coal Project is planned to commence in 2012 (subject to statutory approvals) with a revised initial production target 500,000tpa (tons per annum) of premium grade thermal coal with a longer term plan to ramp up to 1,500,000tpa.
The planned operation will consist of a surface mined and simply beneficiated product delivered to an off-take point on the Barito River located approximately 100 kilometers to the west of the mine site.
Editing by Benget Besalicto Tnb.