Indo Mines to start FS in Yogyakarta ironsands project

Australian firm Indo Mines Limited said Friday that a bankable feasibility study (FS) in the ironsands ? pig iron project in Kulon Progo near Yogyakarta will start in December of this year.

The outcome of FS will be used as the basis for the establishment of a liquid iron (pig iron) making facility in the Yoqyakarta Region to provide feedstock for the major regional steel producers, the company?s chairman said in address of annual general meeting 2006.

Preliminary test work by Outokumpu Technology has shown that the ironsands at Kulon Progo can be upgraded from 14% Fe to above 50% Fe.

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

Indo Mines owns a 30 percent interest in the project with an additional 40 percent interest to be earned upon completion of the bankable FS. (denny)