Haddington updates S. Kalimantan coal project

The following is an edited excerpt from ASX-listed mining firm Haddington Resources Limited on Indonesian projects, taken from quarterly report ended 31 December 2008 published on Friday.

Tabalong coal Project
Haddington continues to evaluate its prospective coal leases at Muara Uya, Tabalong in South Kalimantan

Project activities undertaken during the December quarter included:
- Completion of comperhansive development and production financial model

- Mine design for 1 years through 5

- Formulation of development strategy and coal market evaluation

- Preliminary discussions with adjacent coal project developers with a view to capital reduction via infrastructure sharing

- Forestry permitting application for further on-ground exploration (end of excerpt)

Editor?s note:
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.