Indo Mines updates Jogjakarta liquid iron project
Monday, November 1 2010 - 02:39 AM WIB
Corporate and Strategic
Martin Hacon joined the Company as Managing Director and CEO. Hacon has a distinguished career spanning 32 years in the steel industry including the past 23 years with New Zealand Steel Limited, a wholly owned subsidiary of Bluescope Steel Limited of Australia.
New Zealand Steel is a dedicated steel producer based in Auckland, New Zealand, mining iron sands from its 2 coastal mine sites as its raw material. It is also a significant exporter of iron sands, largely into the China market.
Hacon has had an immediate impact in redefining the Company?s strategy and operational objectives including the investigation of generating early cash flow, with a materially reduced capital cost, from the Iron Project through the production of iron sand concentrate. The Company is currently engaged in discussions with a number of groups and potential strategic partners in relation to both concentrate and pig iron offtake arrangements.
The Company continues to assess opportunities to add value to the business and expand the range of commodities it will supply to the Indonesian and wider Asian steel industries.
During the quarter the Company completed a placement of 17.5 million ordinary shares at $0.20 each to institutional and sophisticated investors to raise $3.5 million before costs.
The Company engaged StoneBridge Group to act as lead manager for the placement.
Funds raised from the placement, which was significantly oversubscribed, will be used to accelerate the feasibility study of the Iron Project, and to provide general working capital.
Jogjakarta Iron Project
The development of the Jogjakarta Iron Project continued during the quarter with the major focus continuing on the environmental and community aspects of the Feasibility Study.
? The Management Team has commenced a feasibility study investigating the production of iron sand concentrate from the Company?s significant deposit held under a Contract of Works. The Iron Project is located 30 kilometres from the major city of Jogjakarta. The study is focussed on initial production of 2 million tonnes of iron sand concentrate which would allow the Company to generate early cash flow prior to commencing pig iron manufacture.
? A draft of the environmental impact assessment scoping document (KA-AMDAL) compiled during the year was presented to the AMDAL Review Commission in early August 2010. Following receipt of the Commission?s responses in the latter part of August, the Company?s environmental consultants have been revising the document to address preliminary comments and incorporate feedback prior to a formal review in October 2010. The Company is working closely with all stakeholders and anticipates receiving environmental approval to proceed with the full feasibility study before the end of the calendar year.
? The Company commenced a recruitment process to strengthen the Indonesia based management and technical teams to expedite the feasibility study for the Iron Project and deliver on the company vision.
? The Company continued the process of community engagement in conjunction with our local joint venture partner, local government and community groups. The program has focussed on broadening the understanding of how the proposed mining process will impact key stakeholders and the benefits derived from the Iron Project in terms of new job opportunities, improved infrastructure, medical and training facilities and other investment directly into the local community.(end of excerpt)