Coziron in W. Sumatra iron sands project deal
Thursday, May 1 2008 - 02:53 PM WIB
ASX-listed mining firm Coziron Energy Resources Limited announced Thursday it has signed HoA to joint venture with local firm PT.Galian Endapan Buana (GEB) to develop the Agam iron sands project in West Sumatra.
GEB has exploration license covering an area of 3,960 hectares in Agam regency with application for mining and export licenses in process, the company said.
Coziron will be responsible for exploration, setting up plant to process iron sands into concentrate; marketing, sales and project financing.
Coziron will have 80 percent stake in the JV company.
Due diligence period is set for six months, and the company expects JORC-compliant reserve to be reported within five months.
Coziron said it has embarked in discussion with two Chinese potential offtakers.
The company initially targets to export 30,000-50,000 to0nnes of concentrate per month. (alex)