Indo Mines updates Indonesian iron sands project progress
Wednesday, January 30 2008 - 06:15 AM WIB
Jogjakarta Ironsands Project--(Indo Mines earning 70%)
1. Contract of Work Application
The contract of works application continues to progress through the various Indonesian government approvals. There is significant support for the company's application from within the Indonesian government agencies as the project is considered of significant strategic benefit and it will be the first fully integrated iron production facility incorporating mining and smelting of a final product within the one operation.
2. Concentrator pilot plant
A 10 tonne per day pilot plant is currently under construction in Jogjakarta for the following purposes.
To generate a 50 tonne concentrate sample that will be shipped to Germany for large scale test work to confirm the design parameters from the current laboratory testing process. The result of this should be available for inclusion in the bankable feasibility study by March 2008. The bankable feasibility study for the 1 million tonne per annum pig iron plant is due for completion in mid 2008.
To process the iron sands from a 3 hectare plot of land, the mined out area will be used for environmental and agriculture research and training.
3. Environmental and Social Studies
URS Australia is continuing with the environmental and social impact studies for the bankbale feasibility studies, they have engaged PT Asana Wirasta Setia, an environmental consulting firm based in Jogjakarta, to assist in completing the AMDAL study that is required by Indonesian government to gain project approval. The environmental and social studies are due for completion in mid 2008.
4. Concentrator Bankable Feasibility Study
GR Engineering Services continued with the Bankable Feasibility Study for a 1.8 million tonne per year concentrate processing facility. The study is examining all aspects of the concentrate production from mining through to final delivery to the shipping facilities, including mining methods, mine scheduling, materials handling, grinding and concentrator technology and waste stream handling. The study is due to for completion in mid 2008.
5. Land Acquisition
The Company is in advanced discussion with several parties with a target of a three to five fold increase in potential tonnage across its iron sands tenements. The company hopes to expand its resource base with a view to increasing overall output through the construction of additional plants.
6. Raw Materials and Infrastructure
The Company, through its 100% subsidiary Indo Energy Pty Ltd, is in advanced discussion to secure coal and gas resources, the coal will be used for the reduction process in the pig iron plant and may be provided as feed for a coal fired power station to be constructed and operated by an external supplier. Gas is being considered as an alternative energy source for power generation and as fuel for the mining and concentrating plants.
The Company is continuing negotiations with providers of power generation, materials transport and import/export port facilities to ensure that the entire infrastructure needs are identified and secured for the project. (end of excerpt)