Indo Mines to start iron concentrate trial production

Australian mining firm Indo Mines Limited will start trial commercial production of iron concentrate at its Jogjakarta Iron Sands Project site.

The operation is expected to begin in the first half of 2011 with production target of up to 250,000 tons, the company said in a statement on Wednesday.

Indo Mines is undertaking a feasibility study to assess the potentials of the Jogjakarta Iron Sands Project for a full-scale production of two million tons per year starting in the last quarter of 2012.

The company is currently in negotiations with a number of potential long-term customers to secure off-take arrangements in relation to both the trial and full scale production, it said.

Indo Mines Managing Director and CEO, Martin Hacon, said ?This is a significant step forward for the Company in realising our vision of being a raw material supplier of choice to the growing Indonesian and Asian metals industry. The production of commercial volumes of iron concentrate well ahead of our target is an indication of the excellent support we have had from our local Joint Venture partner and the local community. It also demonstrates the commitment of the new board, management team, and employees in realising the Company?s potential.? (romel)