Indo Mines starts coal production from S. Kalimantan mine

ASX-listed miner Indo Mines Limited announced on Thursday that its first coal production has commenced at the Mangkok Coal Project, an open-cut mining operation which is located in a major coal producing region 95 kilometres north of Banjarmasin, the capital of South Kalimantan province.

An initial production target of 50,000 tonnes per month of high quality thermal coal is scheduled for the Mangkok Project commencing August 2010, and the Company is also continuing with further exploration and in-fill drilling whilst in production to identify new coal seams on the Project, it said.

The coal will be delivered as part of a US$3.6 million prepayment towards the purchase of 300,000 tonnes, it added.

?This first production marks an important milestone for the Company, which has now established a significant presence in the well established coal region of Kalimantan, and will continue to seek additional near term production coal projects in the region to take advantage of strengthening thermal coal prices.? (alex)