Indo Mines may build power plant to support Yogyakarta pig iron project

Australian miner Indo Mines Limited may build a 1x100 MW coal fired power plant to support its pig iron Project in Kulon Progo, Yogyakarta, a government official said.

 

“The construction of power plant is still an option as right now Indo Mines is still in talks with state electricity firm PLN to get power supply from a 2x 315 MW power plant that the state company plans to build in Pacitan, near Kulon Progo area,” Coal, Mineral and Geothermal Development at the Ministry of Energy and Mineral Resources MS Marpaung said on Tuesday.

 

Indo Mines would not build the power plant if they succeed to get supply from PLN, Marpaung added.

 

Indo Mines will soon commence a bankable feasibility study for a 1 million ton per annum concentrate plant due for completion late in 2007. At the same time a pre-feasibility study will be commissioned to determine the most viable and cost effective hot metal processing technology for the project, the results of this should be available for inclusion in the bankable feasibility study by September 2007. The bankable feasibility study for the 1 million ton per annum pig iron plant is due for completion in mid 2008, the company said on Jan. 23, 2007.

 

The surface sand resource at the Yogyakarta deposit contains an equivalent of about 39 million tons of iron which is sufficient for the development of the deposit and production of 500,000 tons of pig iron annually for a minimum of 20 years, Indo Mines said on Nov 20, 2006.

 

Indo Mines will finance the development of the project as part of its earn-in requirement to acquire a 70 percent interest in the project. The Indo Mines’ partner, PT Jogja Magasa Mining, will retain a 30 percent interest in the project. (Godang/Bernard)