Indo Mines set to start second stage DFS at iron sands project
Friday, October 30 2015 - 10:08 AM WIB
ASX-listed Indo Mines Limited said Friday it has made final signing of definitive feasibility study (DFS) stage II with Outotec for the pig iron project in Kulon Progo, Yogyakarta.
?This detailed study will provide a basic engineering design that is of a ?bankable? standard with appropriate project capital and operating costs. 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 in a statement.
The company said this study will include significant pilot scale confirmatory test work, which shall 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 has been working with Hatch Consultants to provide a feasibility study for the design of the co-generation plant with 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.
Indo Mines said discussion with potential strategic investors for the co-generation plant and coal fired powered boiler have taken place and are ongoing. This will be a critical path to ensure the power availability for the beneficiation plant and pig iron plant.
It added that 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.
Editing by Reiner Simanjuntak