Altura to obtain 3 additional IUPs

By Demas Simbolon

Australia listed Altura Mining Limited has recently stated that the company plans to obtain three new mining permits surrounding its Tabalong Project through joint ventures with Indonesian partners, one successful deal has been made with once concession owner PT Unitras Jaya Investama.

Unitras' IUP, located around 15 kilometers east of the main Tabalong Project, comprises of 3,250 hectares of prospective coal ground with 20 years Operation Production permit from December 31, 2009 with further 10 years extension option, currently waiting for Forestry Permit approval.

Upon completion of this transaction, Altura will hold 70 percent of the Tabalong Coal Project, with Unitras holding the remaining 30 percent. Combined with Unitras' IUP, the total holding is increased from 4,411 hectares, owned by PT Suryaraya Permata Khatulistiwa and PT Suryaraya Cahaya Cemerlang, as well as another IUP owned by PT Suryaraya Pusaka, to a total of 7,661 hectares.

Altura has also entered into an agreement to acquire 80 percent of each of the two IUPs located nearby, which will enter into a formal shareholders agreement upon successful completion of the due diligence process. Once completed, the additional two concessions will expand the project tenement to some 17,000 hectares.

The expanded Tabalong Project is planned to commence coal production in 2012 with a revised initial production target of 500,000 tons per year of premium grade thermal coal with a longer term plan of 1,500,000 tons per year. The project is located roughly 100 kilometers East of Barito River.

Editing by Audy Zandri