Asia Resources sets maiden production of East Java iron sand early 2012

PT Dampar, which is 55 percent owned by Asia Resources Ltd, said it has set initial production and first trial order of its iron sand production in East Java to be in early 2012.

The company has received approval from the holder of Production Operation Mining Business License, PT. Indo Modern Mining Sejahtera, and has commenced the site preparation. Upon completion, installation of the ore processing machines will be assembled on the site.

It said all 12 separator machines have been relocated to the new warehousing/stockpile facility at Kajaran, a village adjacent to PT Dampar site, of which two of the separator machines have been moved to the mine?s work site area at Dampar ready for assembling.

Asia Resources said PT Dampar has also established good working relationship with the local villagers who will assist in the local transportation of iron sand. The stockpile facility at Kajaran will be used to store the processed iron sand prior to transporting to Surabaya for shipment overseas.

?With the establishment of screening plants, PT Dampar expects the initial production and first trial order will be made in early 2012,? it said.

PT Dampar aims to provide high-quality iron concentrates at a low production cost exporting to medium-size steel-makers in PRC and other regions in Asia. At its early stage of production, PT Dampar will sell low concentration unprocessed iron sand.

?In the long run, we will set up refinery plants nearby the mining area for filtering the iron sands in order to enhance the concentration and quality of its final product,? it said. (romel)