Indo Mines updates Indonesian ironsands project
Monday, April 28 2008 - 02:39 AM WIB
JOGJAKARTA IRONSANDS PROJECT (Indo Mines earning 70%)
1. Concentrator Pilot Plant
A 10 tonne per day Pilot Plant is currently being commissioned 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 results of this should be available in May 2008 for inclusion in the Bankable Feasibility Study. The Bankable Feasibility Study for the 1 million tonne per annum Pig Iron Plant is due for completion in mid 2009.
- Top process the iron sands from a 3 hectare plot of land, after which the mined out area will be used for environmental and agricultural research and training.
2. Rehabilitation Study
The Company has finalised arrangements with Gadjah Mada University in Jogjakarta to commence a Rehabilitation Study Program on the Project Site.
The Study will demonstrate in a practical way the environmental and agricultural improvements that are included in the Company?s proposed Mine Plan. Some of the processes targeted in the Study include:
? Construction of Wind Break structures by pattern planting casuarina trees. These structures have been proven to be beneficial for crop propagation and also to aid in tsunami mitigation.
? Cultivation of crops in the processed sands to demonstrate that extracting the iron concentrate does not impact on soil productivity.
? Investigation of alternative higher value crops for use on the rehabilitated landform.
? Maximising the efficiency of the Rehabilitation effort.
? Transfer of technology to the local residents on improved land care and agricultural techniques.
3. Environmental and Social Studies
URS Australia is continuing with the environmental and social impact studies for the Bankable Feasibility Studies, including the AMDAL study that is required by the Indonesian Government to gain project approval. The environmental and social studies are due for completion in late 2008.
4. Concentrator Feasibility Study
A financial evaluation of the preliminary findings from the Feasibility Study for a 1.8 million tonne per year concentrate processing facility demonstrated that the cost to construct and operate the concentrator plant as a standalone operation, ahead of the hot metal plant being commissioned, would provide limited commercial value. Further comminution test work is planned utilising the Pilot Plant to determine the optimal concentrator flow sheet, this may deliver potential design refinements for the Concentrator Plant. The company will review this data as additional information becomes available from the ongoing studies for the final Hot Metal Plant with a view to determining what commercial benefit may arise from an early commissioning of the final Concentrator Plant.
5. Contract of Works 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.
6. Land Acquisition
The Company is in advanced discussions 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.
7. Raw Materials and Infrastructure
The Company, through its 100% subsidiary Indo Energy Pty Ltd, is in advanced discussions 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. (end of excerpt)