Indo Mines assesses viability of Yogyakarta pig iron project

By Romel S. Gurky

ASX-listed Indo Mines Limited said Thursday it has continued with its strategy of assessing the viability of developing its pig iron project in Kulon Progo,Yogyakarta, Indonesia, into a fully integrated mining and iron plant operation, to comply with the Indonesian Government value add laws.

Based on the process alternatives evaluated, and their subsequent economic evaluations, the final process route selected is based on iron sand mining and concentration, followed by SLRN XtraTM direct reduction of iron and final SAF production of pig iron, the company said in a statement.

?The board has approved expenditure for a pre-feasibility study to be undertaken in relation to the technology option selected for the iron plant, including the provision of an estimate of capital and operating costs,? it said.

Plant capacity will be based on a staged development approach using multiple process lines. Hatch and Associates has been appointed to project manage this process in conjunction with the reduction technology provider Outotec.

?Results from the study are expected to be received during the September quarter,? Indo Mines said.

In conjunction with the study, further test work is being carried out to support the technology option proposed as well as assessing the potential coal sources to be used for reduction and co-generation of power.

Upon completion of the study, the company said it will undertake a financial analysis of the project before making any decision to move forward with a bankable feasibility study.

The combined value of the US dollar fixed income portfolio that the company invested in during the March quarter, together with cash reserves at 30 June was about A$20.2 million, the majority of which is held in US dollars, it said.

Editing by Reiner Simanjuntak