Jatenergy to start works on Jongkang I coal project

Australia-listed firm Jatenergy Ltd has reached agreement with mining contractors paving way for commencing work on Jatenergy?s Jongkang I coal project in East Kalimantan despite the recent wet weather condition.

With the agreement, the contractors will receive a fixed rate per tonne of coal mined for the work undertaken with the total production costs, including crushing and stockpiling charges, were expected to be below or in line with earlier estimate of $US58 per tonne, FOB barge.

Jatenergy?s CEO Phil Hodgson said that progress had been swift at Jongkang I despite recent wet weather conditions that had impacted upon other coal mining companies in the district.

?We expect to be mining coal within eight weeks, thanks to excellent relationships with our local partner.?

The company secured the production license for Jongkang I mine last month with the first mining pit indicated in-situ resource estimate of 97,000 tonnes of thermal coal.

Drilling is currently underway on a second pit, and will migrate to a third pit once that work has been completed, the company said.

The project is sited five kilometer from a stockpile, crushing and conveyor loading facility on the Mahakam River, about 25 km from the coal shipping hub of Samarinda. (ruly)