Indo Mines updates Jogjakarta liquid iron project
Friday, July 31 2009 - 02:45 AM WIB
JOGJAKARTA LIQUID IRON PROJECT
(Indo Mines: 70%) Jogjakarta
1. Iron Making Cost Curves
The Company recently commission CRU Group to provide iron making cost data for 2007 and 2008. Using information from 113 plants, located in over 20 countries across 6 continents, the data incorporates all operating costs in the iron production process up to and including the production of hot metal.
The average cost in 2007 was US$257/ tonne (median: US$256/tonne). In 2008, the average cost increased to US$368/tonne (median: US$366/tonne). The 43% increase in 2008 was primarily due to the input costs of raw materials. Indo considers 2007 to be more reflective of long-term costs than 2008. This is supported by the average cost so far in 2009 being approximately 10% above 2007, and 25% below 2008 costs.
The Scoping Study undertaken by Indo Mines estimated the operating cost of the
Jogjakarta Pig Iron Plant to be US$150/tonne. Based on 2007 peer costs, this would make
Indo Mines one of the lowest cost producers of iron globally, and the lowest cost producer from the sample used in the 2007 cost curve above.
2. Socialisation Programme
The Company continued its socialisation programme during the quarter, liaising with local communities and government detailing how the proposed mining process will impact on them.
URS have completed the preparation work to commence the AMDAL field studies. The company obtained the final approval to commence the AMDAL field studies from the Regent of Kulon Progo on 19 June 2009, kick off meetings have been scheduled with the various government agencies to commence the field activities.
3. Bankable Feasibility Study
The Company has continued to progress the Bankable Feasibility Study (BFS). The BFS will cover the following major areas:
1. Hot Metal Processing Flow Sheet Development and Detailed Engineering;
2. Mining, Concentrator and Infrastructure design;
3. Environmental & Social Impact Assessments;
4. Detailed financial modelling;
5. Market research;
6. Port and Shipping requirements;
7. Rail Transport; and
8. Power and oxygen supply.
Outotec are conducting reduction and smelting tests in their European facilities with a 50 tonne concentrate sample from the Jogjakarta Pilot Plant and 130 tonnes of low quality thermal coal similar to the material that will be sourced for the project. Based on the flow sheet developed from this test work Outotec will then complete the full engineering design for the pig iron DRI and smelting plant. This work was postponed awaiting the recently completed funding transaction with Anglo Pacific Group PLC.
Upon completion of the reduction and smelting test work, engineering of the mining, concentrator and infrastructure requirements will be undertaken.
URS has commenced both the environmental and social impact assessments.
Market research, power and oxygen supply and logistics infrastructure consultants will be engaged in the coming months. (end of excerpt)