Churchill sees early start for E. kalimantan coal project
Monday, June 23 2008 - 08:04 AM WIB
Following the early completion of the Scoping Study for the EKCP, the company is commencing the full Feasibility Study phase and has decided on a staged approach to developing the thermal coal mine, it said.
The Scoping Study for the EKCP which commenced earlier this year has been completed ahead of schedule with very positive results. The Study detailed various alternatives for mine development, crushing and stockpiling at site, transporting the coal from site to port and the port facilities and port location.
The Scoping Study concluded that a combination of haulage road and conveyor is the most profitable means for the final transportation system from mine to port, it said.
In addition, the Scoping Study focused on how to bring EKCP into production as quickly as possible and concluded that by using a staged approach to production starting at 2 Mtpa, mining can be brought forward by 12 months, whilst the full infrastructure capable of handling up to 14 Mtpa 20 Mtpa is constructed over time
Following on from the Scoping Study, the Company has entered into commercial discussions and negotiations with several international engineering companies for final infrastructure design, pricing and construction project management.
Detailed discussions regarding project funding have commenced with a number of investment banks and potential joint venture partners specialising in the coal sector. In addition to this, negotiations with a number of parties regarding additional coal off-take agreements have also commenced, it said.
The company currently has JORC-compliant resources of 250 Mt at EKCP and is currently conducted drilling to enlarge the current resources.
Further drilling continues at the EKCP to enlarge the current JORC resource of 250 Mt.
?The Company is working towards an updated JORC statement and has contracted two ground survey teams to complete an additional topographical survey which will also work towards moving the Inferred and Indicated JORC resources of the current 250 Mt, into the Measured category and then into Mining Reserve after completion of Feasibility Studies,? it said.(alex)