Indo Mines updates Indonesian iron project
Wednesday, October 31 2012 - 05:03 AM WIB
Jogjakarta Iron Project
The Company is currently undertaking a review which explores the potential to stage the implementation of the 2 million tonne per annum iron concentrate facility leading into the commissioning of the pig iron facility. A decision on the staged implementation is expected during the December quarter.
Since quarter end, the Indonesian Ministry of Energy and Mineral Resources has issued a Decree confirming approval of PT Jogja Magasa Irons application for Commencement of the Construction Phase of the Project within the Contract of Works Area.
The Decree received from the Ministry is effective and retroactive from 26 April 2012 and is valid for a period of thirty six months from that date.
The Construction Approval completes the Government approval required to commence construction of the commercial scale facility.
Karangwuni Demonstration Plant
A failure of the ball mill gearbox at the Demonstration Plant occurred during late August resulting in delays in the production of concentrate whilst repairs were undertaken.
Following completion of repairs to the gearbox and concrete plinth, treatment of primary concentrate recommenced on 14 October. Plant availability of the secondary processing unit continues to improve following the downtime.
Given the gearbox failure and delays in completing the repairs, the proposed dispatch of material is now likely to occur in the New Year.
Corporate
Placement to Rajawali
The Company entered into a binding subscription agreement (Agreement) with the Rajawali Group to complete a $50 million placement.
Pursuant to the Agreement, subject to lndo Mines shareholder approval, the Rajawali Group wilt increase its holding in the Company through the issue of 250 million shares each at $0.20 per share (Placement) taking their stake in the Company to 57.12%.
The significant cash injection from the Rajawali Group provides funding to assist with the staged implementation of the 2 million tonne per annum iron concentrate facility, ongoing design in relation to downstream pig iron production and working capital.(end of excerpt)