Coziron says partner pulls out from W. Sumatra coal project

ASX-listed firm Coziron Resources Ltd announced on Friday that Grange Resources, its partner in Inderapura coal project in West Sumatra has decided to cease its participation in the project following due diligence work conducted by the latter.

The company said the results of the due diligence work were critically reviewed and Grange has indicated that the production potential for the Inderapura project is too small for an export thermal coal operation and is best suited for domestic consumption by Indonesian, or other South East Asian, cement manufacturers.

Despite low reserves, the channel samples analysed by SGS Laboratories in Carrington, New South Wales, and Australia showed that there is favorable low ?total? and ?inherent? moisture contents, variable sulphur levels, elevated ash content and highly encouraging calorific coal values, the company said.

?Coziron will actively review further exploration proposals, feasibility and market requirements by cement manufacturers to best determine and potentially develop the Inderapura coal project,? the company said. (alex)