Indo Mines undertakes first review of iron plant DFS

By Ruli Setiawan

ASX-listed Indo Mines Ltd said Friday that work on the definitive feasibility study (DFS) with Outotec for the iron making facility at Kulon Progo, in Yogyakarta, to produce pig iron and vanadium by product has continued with first review now being undertaken.

This detailed study will provide basic engineering design that is of a ?bankable? standard with appropriate project capital and operating costs.

The company said in a statement that 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.

Documents that have been submitted and reviewed by Indo Mines to date are plant layout, single line diagram, block diagram, document and equipment codes procedures, process flow diagram, and equipment list including major equipment outlines.

?Subsequent to the March quarter the project team is evaluating the preliminary project capital and operating cost structure and scope modifications for the completion of the DFS,? the company said.

It explained that technical challenges faced throughout the design process include; correction material introduction to hot metal (if mill-scrap is utilised there is a drop in recoverable vanadium), the need for anthracite in the process, milling of coal, raw material handling ? in particular the fine particle size of the concentrate and acquiring credible technical data associated with the Kulon Progo region such as seismic activity.

Indo Mines through its 70 percent-owned Indonesian subsidiary PT Jogja Mangasa Iron is planning to develop the Kulon Progo iron plant project.

Editing by Reiner Simanjuntak