Jatenergy secures production permit for its third coal mine project
Thursday, February 16 2012 - 01:57 AM WIB
Australia-listed energy firm Jatenergy Limited announced that the company has secured production mining business license, better known as IUP Production for its third coal mine project of Atan Bara in East Kalimantan with the mining activities was expected to start within about six months.
The company said that the production license would cover more than 200 hectares with the exploration target of between 500 and 700 million tons of high quality thermal coal.
?We have now stockpiled more than 5,000 tons of coal at our Jongkang coal mines and we are close to achieving Jatenergy?s first coal sale,? Jatenergy?s CEO Phil Hodgson said.
Jatenergy purchased the contractual rights to Atan Bara last year.
?The company bought into these mines during the second half of 2011, and now we have all the necessary approvals to develop a third export mine at Atan Bara.?
?We will need to complete some further drilling to define the mine plan and then mobilize contract miners. In all, we would expect to start mining within about six months. It is a logistically simple, fast-to-production, high quality thermal coal project, similar to the mines at Jongkang,? Phil Hodgson said.
It said that the production costs are expected to average at about US$45 per ton, while FOB barge sales of this type of quality coal is currently fetching around US$60 per ton.
Jatenergy will provide the working capital to develop the mine, expected to be a maximum of $2 million, from cash flow generated by its other producing mines.
?Together, these operations will provide us with the cash-flows to commence the development program on our much larger Katingan coal project in Central Kalimantan , which has an exploration target range of 36 million to 43 million tons at an average calorific value of 5,575 kCaI/kg, where we aim to commence drilling once necessary approvals are granted. We are at the last step in this approval process - awaiting Ministerial support - having already obtained the letter of support from the Regency.?
Editing by Adianto P. Simamora