Antam says S. Kalimantan diamond project FS to be completed soon

State miner PT. Aneka Tambang Tbk. said on Wednesday that feasibility study on Galuh Cempaka diamond prospect in South Kalimantan had been progressed significantly and final results is expected to be completed during the third quarter of 2002.

The company said pre-feasibility and scoping studies earlier in the year examined the most economic mining methods for the project and concluded that the higher grade Danau Seran South Channel could be economically dry mined while dredging was the optimal mining method for the remainder of' the Danau Seran area, as well as the much larger, adjoining Cempaka resource.

The feasibility study is based on the initial mining of the higher-grade zones of Danau Seran, followed by longer-term mining of Cempaka, at an initial rate of between 35,000 and 45,000 carats per annum. Preliminary economic analysis suggested a total of US$1 million in plant and $1 million in working capital will be required for commencement of mining, said Antam.

Antam also said during the second quarter of the year, 4,061 carats of diamond, which was collected during exploration, were sold in Antwerp and raised US$ 758,000.

Antam has 20 percent stake in Galuh Cempaka diamond project while Canadian BM Diamondcorp has 80 percent. (alex)