Indo Mines says stage I DFS at Yogyakarta iron sands project near completion
Wednesday, July 29 2015 - 01:32 AM WIB
ASX-listed Indo Mines Limited said that the stage I definitive feasibility study (DFS) at the pig iron project in Kulon Progo, Yogyakarta, is near completion, with preparations being made for DFS stage II.
The company said in a statement Wednesday that studies that have been completed include the Equator Principle Standard (EPS) GAP analysis, final deliverables of the Basic Engineering Design (BED) for the iron sand beneficiation plant and feedback from Outotec on pelletisation testwork for the iron sand concentrate.
Over the past month Indo Mines has been working with Outotec on a DFS proposal for the iron making facility for production of pig iron and vanadium by product. This study will provide basic engineering design that is of a ?bankable? standard with appropriate project capital and operating costs. A central focus of this study is an improvement in vanadium recovery which is an essential revenue stream for the economic feasibility of the project in the current steel market environment.
Significant pilot scale confirmatory test work will also be undertaken in Pori, Finland and Frankfurt, Germany, for the pelletisation, induration, reduction and smelting process The reduction process will be focused on the Outotecs? SL/RN Xtra technology while the smelting process will be focused on Outotecs? circular open bath submerged arc furnace technology.
Indo Mines said it has also received a proposal from Hatch Consultants to provide a feasibility study for the design of the co-generation plant with additional coal fire powered boiler. This study will enable negotiations with third parties willing to develop the plant. Additionally a water source trade off study will be undertaken to identify the most reliable and cost effective source of water for the iron and co-generation plant.
PT Earthworx Indonesia has been appointed to upgrade the current JORC iron sand resource report to 2012 JORC reporting standards.
?Discussions with potential off-takers of both pig iron and vanadium slag concentrate have taken place and are ongoing. This, and the creditworthiness of potential off-takers, is a critical path item for successful raising of equity and Export Credit Agency debt financing,? Indo Mines said.
Editing by Reiner Simanjuntak