Katingan Ria coal project to secure final forestry permit in H2 2013
Friday, May 24 2013 - 03:24 AM WIB
ASX-listed Realm Resources Ltd. reported on Friday the following update on recent progress at the Katingan Ria project in Central Kalimantan, as well as the market outlook for its thermal coal product.
The company said in a statement that following the recent completion of the Feasibility Study, the company has focused on securing strategic off take partners and financing for the project, and advancing the final stages of permitting.
Engagement with potential strategic partners and investors has accelerated with updates to the data room and assisted by a gradual recovery in the price of Katingan Ria 4,200kcal GAR coal to around US$43/t. This is now above the base case Life of Mine FOB cash cost forecast of $41.23/t and the cost forecast for the initial five years of US$37.62/t.
On the permitting front, the company has taken key steps towards upgrading the ?In-Principle? Forestry (locally known as Izin Pinjam Pakai) Operations permit to a Final Forestry Operations permit in second half of 2013, thereby allowing the company to progress with coal mining operations and production.
Commenting on the update, Chairman Richard Rossiter said, ?We are encouraged by recent progress at Katingan Ria, coinciding with the gradual strengthening of regional markets for its coal product. Together with our partners, we remain committed to bringing Katingan Ria on stream as a simple, low cost, 2.5Mtpa operation in the near term?.
Editing by Reiner Simanjuntak