Indo Mines has started DFS at iron making facility
Friday, January 29 2016 - 04:09 PM WIB
ASX-listed Indo Mines Ltd said that second stage definitive feasibility study (DFS) with Outotec for its iron making facility in Kulon Progo, Yogyakarta, to produce pig iron and vanadium by product, has commenced.
?This detailed study will provide basic engineering design that is of a ?bankable? standard with appropriate project capital and operating costs,? the company said in a statement Friday.
Indo Mines said the focus of this study is an improvement in both capital and operating expenditures of the pig iron plant and an improvement in vanadium recovery which is an essential revenue stream for the economic feasibility of the project.
Indo Mines said it is also currently focusing on developing supporting infrastructure for the smelter development in the allocated industrial zone, with design of a co-generation and power plant underway.
The company said ground-breaking has taken place on the acquired land at Kulon Progo for the development of a basic site office ? this office will be the central hub for all operations of PT Jogja Magasa Iron, Indo Mines? 70 percent-owned subsidiary, and corporate management.
?This will make all other Indonesian offices redundant and lower overall running costs,? it said.
Editing by Reiner Simanjuntak