Coal Fe updates Indonesia coal projects
Friday, October 1 2010 - 02:47 AM WIB
Project review
Pancaran Abadi Project
The Pancaran Abadi (?Abadi?) Project is located in the district of Muara Badak and Anggana, Sub Province Kutai Kartanegara, in the Province of East Kalimantan. The area of the concession was adjusted marginally from 1.017 Ha to 996 Ha in the final Mining. Operation and Production Licence (Izin Usaha Penambangan Operasi Produksi or ?IUP? in compliance of the new Law on Mineral and Coal Mining No. 4/2009 in the Republic of Indonesia), owing to the requirement of providing the necessary buffer zone for the existing gas pipeline in the vicinity. Of this total concession area, the completed drilling program covered 300 Ha. The remaining 696 Ha is presently unexplored.
The Mining, Operation and Production Licence (IUP Operasi Produksi) provides the necessary authority to carry out the full scope of coal mining activities encompassing construction, production, processing, transportation and sale. The Mining, Operation and Production Licence expires on 10 September 2025.
The concession area lies in Selo Lai Village. District of Muara Badak. Regency Kutai Kartanegara, Province East Kalimantan, Indonesia. The concession area can he reached from Balikpapan by land transportation to Samarinda and thence continued to Selo Lai village for about 2 hours drive. The exploration area is relatively easy to be reached by 4WD vehicles.
On 3 March 2010. the Company announced the completion of resource modelling and estimation and review in accordance with JORC guidelines.
The increase is a result of the completion of the second phase drilling with a total of 50 additional drillholes to a typical depth of 50-100m within the main project area of about 300 Ha located in the south-western portion of the overall concession area. The latest phase of drilling occurred between March and May 2009. All holes were electronically logged for density. resistivity and width.
During the period under review, PT Techventure Indocoal (?PTTI?), a subsidiary of the Company, in collaboration with PT Pancaran Surya Abadi has acquired a piece of land measuring approximately 5 Ha in the vicinity of the mine site and fronts onto Kutai Lama River. The land will be developed as a private jetty for the purpose of coal stockpiling and loading.
Activities during the year
The private stockpile area has been cleared and the first layer of overburden has been removed the jetty area is now being widened to accommodate a more efficient movement of barges coming in and out the jetty area.
The first shipment is now targeted for end September 2010. The extension of the jetty will be completed mid October 2010, followed by the weigh bridge and crusher end of October 2010.
On 22 September 2010, the Company announced the completion of all infrastructure development at the PT Pancaran Surva Ahadi coal project and that the mining contractor, PT Toba Jaya having mobilised tile necessary machinery, was currently producing from the first mine pit.
Palapa Project
The Palapa Coal project is a 100 Ha project located upon the western margin of the island of Sulawesi. The regional geology is strongly reminiscent of Kalimantan with moderate coal production coming from the south western corner of the island.
The project is located within the administrative boundary of the Banti Village, Kecamatan Baraka. Kabupaten Enrekang, South Sulawesi Province and can be reached by two wheel or four wheel drive. Ujungpandang city is approximately 300 kilometres from the project area.
The Company has not been able to proceed with work on the 100 Ha Palapa Project during the period. ?this is due to outstanding obligations under the license that are to be fufilled by the owners of CV Palapa. The Company has negotiated with the owners to allow the Company to explore another concession that has been granted to the owners whilst the owners settle its outstanding obligations stated under the license for the Palapa project. The new concession area is known as Palapa 2 project).
Palapa 2 project is a 2,946 Ha concession area located next to the Palapa project and has been offered to the Company at no cost to the Company to carry out exploration activity. An exploration license has been issued for the concession area which expires on 1 November 2008 and can be renewed once payment is made for the extension.
Activities during the year
Due to the present lack of funds the drilling activity will continue once more funds are raised. The exploration license will also be extended provided payments are made for its extension.
Andalas Project
The Company (through its subsidiary, PT Techventure Indocoal) has a 70% interest in four (4) Indonesian companies, which currently holds exploration licenses for iron ore concessions in Central and West Sumatra, Indonesia
The concession areas can be reached by daily flight from Jakarta to Padang (1 hour and 30 minutes), From Padang the journey continues by car (4 hours drive) through the well-paved Trans-Sumatera highway to a village called Air Manggis (about 10 minutes by car from Lubuk Sikaping, capital city of Pasaman regency). From Air Manggis Village there is another one hour walk to Sariak Laweh Hill with a moderate to steep slope.
Activities during the year
Preliminary survey work on the Andalas projects has been kept in abeyance until the raising of further funds to undertake a complete exploration activity on the Andalas projects. (end of excerpt)