Australian firm eyeing Jogjakarta ironsands project

Australian firm AKD Limited announced on Friday that it had entered into agreement with two Indonesian firms that would enable it to acquire 70 percent interest in Ironsands-Pig Iron project in Jogjakarta, Central part of Java.

The company's deal with PT.Jogja Magasa International and PT.Nusantara Energy Limited, that, subject to feasibility,the ironsands deposit in Jogjakarta will be used as the basis of the establishment of a liquid iron (pig iron) making facility to provide feedstocks for major regional steel producers.

AKD reported that the ironsands deposit was initially drilled by state miner PT.Aneka Tambang Tbk in the 70s and 80s. The deposit contains titaniferous magnetite over a 22-km long and 1.5-km wide strip of coastal plain in Jogjakarta.

AKD will initially undertake a detailed review of the previous technical and engineering data and will formulate development program for the project.

AKD estimated that it would need A$2 million to complete detailed feasibility study of the project. (alex)