Aussie firm completes Kalimantan coal mines acquisition
Thursday, May 19 2011 - 03:21 AM WIB
Jatoil's two Kalimantan coal projects are known as Katingan and Atan Bara. The two projects have been independently reviewed by an independent geologist, and exploration targets have been defined.
The Katingan Project is the more significant of the two assets. It comprises a single, 5,000 ha tenement located 160km north-west of Palangkaraya in Central Kalimantan. It has a substantial exploration potential, exceeding 40 million tonnes. The quality of the coal is expected to be consistent with thermal benchmarks.
The Atan Bara Project is located in the North Panajam Pasir regency of East Kalimantan. The concession is covered by an exploration IUP comprising 200ha. Atan Bara has a smaller exploration target than Katingan, but its resources are more readily accessible and easily transported because of its proximity to the coast.
Jatoil also has an Indonesian based exploration team who identify and assess new projects for potential acquisition. There is also an opportunity to reforest depleted coal fields with oil bearing crops such as jatropha, extending Jatoil's renewable fuel operations into new areas. This could extend the life of the two current coal project areas for another 35 years, creating long term employment for the local communities.
Jatoil expects that an early-stage coal mining operation at Atan Bara will commence within nine months, providing cash flow to assist with the funding of the expansion of the company?s renewable oil feedstock operations in South-East Asia and exploration activities on its coal properties, it said. (denny)
| Projects | Status | Indicative calorific value (kcal/kg) | Potential exploration target (Mt) | Tenement size (ha) | Haulage distance (km) | Estimated time to production |
| Katingan | Exploration IUP | 5,400 - 6,035 | 36.5 - 43.1 | 5,000 | 50 | 2 - 3 years |
| Atan Bara | Exploration IUP | 5,900 - 6,400 | 0.5 - 0.7 | 200.1 | 6 | 6 - 9 months |
| Total | 37.0 - 43.8 |