Iron sands mining firm to sign COW

Government said on Friday that Jogja Magasa Mining will be granted a Contract of Work (COW) for its iron sands concession in Kulonprogo, Jogjakarta after it has secured all necessary approvals.

Bambang Setyawan, Director General of Mineral, Coal and Geothermal at the Ministry of Energy and Mineral Resources told reporters that the COW would be signed this month.

Setyawan said that the company, together with its Australian partner Indo Mines Limited will spend up to US$600 million to initially produce 500,000 TPA of pig iron, ramping up to 2MTPA.

Production is expected to start in 2011 with output sold to domestic and export markets. (bernard)