Haddington scales back S. Kalimantan coal exploration

Australian firm Haddington Resources Limited said it had scaled back coal exploration activities at Tabalong, South Kalimantan due lower coal prices and introduction of new Mining Law.

?Although on site activities have been minimal, there has been significant progress made in the upgrade of the mining tenements from exploration to exploitation, with exploitation permit expected in November 2009,? the company said on Monday.

The project is covered by two KP's (Mining Permits) which are held by PT Suryaraya Permata Khatulistiwa (SPK) and PT Suryaraya Cahaya Cemerlang (SCC) and cover 1,993 and 4,315 hectares respectively.

Haddington, through its wholly owned subsidiary PT Minvest Mitra Pembangunan (MMP) has an option to purchase both PT SCC and PT SPK in their entirely.

Haddington has carried out conceptual project feasibility in order to ascertain the annual production limits, infrastructure requirements, transport options and product marketing. Present plans are for annual production and sales of coal at 500,000 tonnes to 750,000 tonnes. Present indications are that the Tabalong project could be in production in early 2010.

The Company has calculated a maiden Coal Resource for the Tabalong coal project. A total estimation of Coal Resource is about 11.3 million tonnes. (denny)