Discussions with potential investors in progress for Katingan Ria coal project
Friday, September 27 2013 - 01:56 AM WIB
ASX-listed Realm Resources said that discussions are underway with potential investors and strategic partners to bring forward the development of its 51-percent owned Katingan Ria thermal coal project in Central Kalimantan.
The company said in a presentation material obtained by Petromindo.com Wednesday that several parties have expressed interest in investing in the project, offering pre-payment finance, providing logistics solutions, or as off-taker. It did not disclose the identity of the interested parties.
According to the presentation material, a plan by state-owned electricity company PLN to build a 2x100 MW coal-fired power plants in Central Kalimantan should bode well for the coal project as Katingan Ria coal specifications are suited for the power stations.
Realm Resources, which is in partnership with Indonesian firm PT Sinar Mulia Anugerah Agung in the Katingan Ria project, said in May that coal production was projected to start in 2014.
The Katingan Ria Project covers 5,053 hectares under IUP (Exploration No. 274) and is located in Central Kalimantan within the Katingan Hulu district, approximately 175km North West of the provincial capital of Palangkaraya. A recent feasibility study, supported for the development of a 2.5 million tons per annum (Mtpa) to 3 Mtpa open cut mine with a life of mine of around fifteen years. The study was based on coal being hauled 40km - 45km to a stockpiling and barge loading facility on the Katingan River, then barged 435 km to the river mouth for transhipment into ships for delivery to market.
The presentation material provided the following Katingan Ria project overview:
? 89MtJORC resource, 29MtJORC reserve
? Sub‐bituminous, mid‐rank (4,200 kcal/kgGAR), low sulphur, low ash thermal coal
? Simple geology, low strip ratio
? 2.5Mt‐3.0Mtpa open cut
? Low capital requirements
? Advanced permitting
Editing by Reiner Simanjuntak