JMI appoints Royal Hakoning to assess logistic options

By Romel S. Gurky

ASX-listed Indo Mines Ltd said Monday that its 70 percent owned Indonesian subsidiary PT Jogja Magasa Iron (JMI), which is developing a smelter to process iron sands into pig iron in Kulon Progo, Yogyakarta, has appointed Royal Haskoning DHV to assess potential logistic options for the project including viability of road, rail and port development.

Additional options were also assessed in moving heavy equipment to the site during construction phase ? Royal Haskoning suggested Landing Craft Transport (LCT) was the preferable method, the company said in a statement.

It added that JMI has also consulted with Indonesia?s state-owned railway operator PT Kereta Api (PT KAI) on a potential ?Public-Private Partnership? (PPP) and ?take or pay? arrangements.

A commercial rail line runs within 6 kilometers from the Contract of Work (Cow) and has proven to be a potential option for delivery of coal and iron sands from outside the region.

Royal Haskoning study confirms that capacity is available on this line that could fulfill the iron and power plant throughput requirements (even for the additional lines).

?If the rail option was pursued then raw material would be barged to Cilacap then carried via train approximately 100 kilometers to Kedundang Station ? from here raw material would be trucked the final 6 kilometers to site,? the company explained.

Currently PT JMI has appointed CRL labs in New Zealand to assist MBE in beneficiation test work of the iron sand for the Basic Engineering Design (BED) contract. Microscopic analysis is being undertaken which in turn has identified the need to utilize a low intensity magnetic rougher to separate low grade magnetite from the high grade. This is because low grade iron sand will not liberate iron, even un der the most intense grinding ? for efficiency purposes it is best to screen this material out immediately, thus increasing both yield and plant performance.

Editing by Reiner Simanjuntak