Indo Mines to complete Yogyakarta iron project FS

Australian listed mining firm Indo Mines Limited announced on Tuesday that the regent of Kulon Progo in Yogyakarta has approved the company?s environmental impact assessment scoping document (KA-ANDAL).

The KA-ANDAL approval will enable Indo Mines to complete the environmental and social baseline measurements and engineering design required to finalise the feasibility study (FS) for the Jogjakarta iron project, the company said.

The KA-ANDAL was prepared in accordance with Indonesian legislation and international best practice and defines the scope and boundaries for the iron project with specific reference to: environmental impact, social impact, risk management and mitigation and measurement and monitoring

Indo Mines is currently assessing the potential to produce 2 million tons of iron concentrate per year from its iron project. Production of commercial trial volumes of iron concentrate will begin this year ahead of the targeted commencement of full-scale operations in June 2012, it said.

There is also further potential to produce 1 million tons of pig iron per year at a later date.

Indo Mines? Managing Director and Chief Executive Officer, Martin Hacon, said: ?We have been working closely with our Indonesian partners and the Regional Government on the KA-ANDAL for two years and today?s approval reflects the cooperation brought to the process by all sides. It is a key milestone in the future development of the Iron Project, providing a framework for a true partnership between the operators and the local community and important momentum for the completion of the Iron Project Feasibility Study. In conjunction with the recently announced appointment of key personnel and a significant new investment in the business by strategic partner, we believe we continue to make great strides towards our goal of realising the full potential of the Company?s high-quality assets.? (denny)