Clough reports 40MT resource at E. Kalimantan coal concession

ASX-listed engineering and construction company Clough Limited reported on Thursday that its Separi Block in Santan coal concession, East Kalimantan, has an estimated JORC-compliant total resource of approximately 40 million tonnes; made up of 22 million tonnes measured, 8.9m tonnes indicated and 8.6 million tonnes inferred.

Approximately 70% of the resource is carried within 3 seams with average thickness of 2.6, 2 and 1.2 meters respectively. A cut off of 0.3 meters in thickness has been applied in establishing the resource, the company said.

The resource report is based upon results from 403 drill holes; 350 of them from the most recent campaign by PT Santan Batubara.

Drilling on the other 3 blocks in the concession continues and results will be released when available, the company said.

?The results from the Separi block are encouraging and the joint venture is well advanced with its plans to produce the resource. Petrosea has led the construction of a 9km haul road and has committed US$42 million to a mine fleet sized to produce 2MTPA. Harum Energy recently completed the upgrade of the port facilities and we expect the first shipment early in 2009,?John Smith, Clough?s CEO said.

The coal concession, which is located, 45km north of Samarinda and 30km by road to port, is owned by PT Santan Batubara, a 50/50 joint venture between Clough?s 82% owned Indonesian subsidiary, PT Petrosea, and PT Harum Energy Indonesia.(denny)