Altura plans further drilling for Tabalong coal project
Friday, June 17 2011 - 02:13 AM WIB
Tabalong currently has a JORC compliant resource estimate of 13.4 million tonnes of high grade thermal coal. Altura is aiming to increase the coal resource during the next phase of exploration, the company said in a statement.
The Tabalong Coal Project consists of two IUPs in the province of South Kalimantan on the island of Borneo. Both IUPs have been granted for exploration purposes and Altura is seeking to obtain necessary approvals for operation production status.
The two IUPs are held by PT Suryaraya Permata Khatulistiwa (SPK) for the northernmost tenement and PT Suryaraya Cahaya Cemerlang (SCC) the southernmost tenement which is split into Blocks 1 and 2. Both IUPs were issued on December 31, 2009 and are valid for a period of 6 years (exploration). SCC Block 1 has not been fully explored due to access, although coal is known to exist in this block.
The exploration field program will be completed by Altura?s in-house exploration team based in Jakarta with drilling and geophysical logging to be completed by PT Asiadrill Bara Utama and PT Velseis Indonesia respectively. Both Asiadrill (100%) and Velseis (50%) are companies owned and operated by Altura and therefore provide total control of the entire exploration program.
The program will focus on delineating further resources in the high energy coal measures of the Tanjung Formation. The Tanjung Formation is known for its high energy, low ash and medium sulphur coal seams. Further to the north and west of Tabalong there are several metallurgical (coking) coal occurrences and any coal samples recovered from this program will be analysed for their coking potential.
The commencement of the program will depend on receipt of approvals from the relevant authorities but it is targeted to be underway in Q3 2011. The program duration is expected to be four months with delivery of results in late 2011.
Coal Resource
The JORC compliant Coal Resource estimate of 13.4 million tonnes comprises a Measured Resource of 4.0 million tonnes, an Indicated Resource of 5.8 million tonnes and a further 3.6 million tonnes of Inferred Resource. The deposit contains a low ash (4.8%), low sulphur (0.98%; measured resource), high energy (6,349kca1/kg; as received basis) sub-bituminous coal.
Tabalong Development
The Tabalong Coal Resource indicates a highly marketable product with high energy, low ash and low to medium sulphur characteristics. The larger proportion of the Measured Resource is categorised as Indonesian Coal Index (ICI) Type 1 coal. Index pricing for this coal as at 15 June 2011 is US$119.03 per tonne FOB vessel which provides a promising outlook for Tabatong as it moves to production.
Altura has successfully converted the original Tabalong Exploration Permits into the new form of tenure (IUP exploration) and continues to seek approval of the 2 x IUPs to Operation Production status. The pre-requisite documentation required for approval, consists of an Environmental Impact Statement and the Government Feasibility Study. Both have been accepted the Regency Councillor and the Mines Department. Currently the Mine Rehabilitation and Reclamation plans await approval in order to process the application further.
Subsequent to Operation Production approval the Company will be required to obtain a Pinjam Pakai (Permit to use forestry land) from the Minister of Forestry prior to commencement however the project does not cover any protected forestry areas. The issue of these permits has been quite slow and as such no completion timeline can be offered.
Altura aims to develop Tabalong as a stand-alone operation initially at a planned annual production rate of 300,000 to 400,000 tonnes per annum of premium thermal grade coal. The location of the Tabalong project also lends itself to satellite development of other mining permits. The area consists of numerous other smaller resource areas that have the potential to be operated simultaneously to provide increased tonnages and blended coal products. Altura is considering a number of potential adjacent projects that could be amalgamated into the development. (romel)