Altura updates Indonesian coal project
Friday, April 29 2011 - 02:59 AM WIB
TABALONG--South Kalimantan, Thermal Coal (100% AJM)
The Tabalong Coal Project consists of two (2) Mining Licences (IUPs) in the province of South Kalimantan on the island of Borneo (see Figure 3). Currently both IUPs are granted for exploration purposes and Altura is seeking the necessary approvals to have them granted for operation production status.
During the quarter a review of the Tabalong Coal Project was conducted as part of internal due diligence and mine planning processes. The review estimated a revised total JORC compliant Coal Resource of 13.4 million tonnes of high grade thermal coal. The previous resource assessment was completed in May 2008 and contained an estimated total resource of 11.3 million tonnes. The resultant variance is due to updated seam correlations within the geological model and treatment of coal partings within the coal seams.
Approvals Process
The Indonesian Central Government introduced a new Mining Law in December 2008. Existing mining permit holders such as Altura were required to continue the mining approvals process under the new law. The new law was not invoked until a specific set of regulations were introduced to apply the law, and this process was completed in mid 2010
Altura has successfully converted the original Tabalong Exploration Permits into the new form of tenure (IUP exploration) and continued 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 by the Regency Councillor and the Mines Department. Currently the Mine Rehabilitation and Reclamation plans await approval in order to process the application further, and this is expected early in Q2 2011.
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 confirmed.
Under the new Mining Law no new mining permits can be applied for, as they are to be offered on a tender basis from the government, and to date none have been issued. Altura has continued to seek out and review further coal opportunities to support the existing tenement holding in Indonesia.
Coal Resources
The Tabalong Project is comprised of 2 x IUPs held by Suryaraya Permata Khatulistiwa (SPK) the northernmost tenement and Suryaraya Cahaya Cemerlang (SCC) the southernmost tenement which is split into Blocks 1 and 2. Both IUPs were issued on 31 December 2009 and are valid for a period of 6 years (exploration). SCC Block 1 has not been fully explored, although coal is known, to exist in this block. Currently an exploration program is being planned for SCC Block 1 and expected to be completed in Q4 2011.
Exploration to date has been conducted in house by PT Altura Indonesia (wholly owned subsidiary of Altura Mining Limited). (end of edited excerpt)