Kupang JV obtains final approval for production of manganese lump
Thursday, March 14 2013 - 02:07 AM WIB
ASX-listed Kupang Resources Limited announced on Thursday that the Kupang Joint Venture (JV) has obtained the final approval to allow crushing, screening, blending and stockpiling of raw manganese ore at its Kupang processing site.
The Kupang JV has received final approval from the Governor of Kupang to clear and prepare its processing area for site setup and the commissioning of recently acquired processing equipment.
The Joint Venture acquired the land on a 30 year lease in an industrial complex 8km south of the deep-water Tenau port of Kupang, for the purposes of stockpiling, processing and blending raw Manganese and upgrading it into a product suitable for sale on the global market to the Ferro and Silco manganese smelting industry.
Kupang Resources Limited Head of Operations, Simon Youds, said ?With this final approval now in place the Kupang JV is poised to ramp up activities towards the commencement of production in the coming months.?
?The receipt of this approval is a credit to all involved, from the Company and its advisors, to the local authorities in Kupang.?
?The operations of the Kupang JV will create cash flow to the Company, and at the same time provide significant opportunities to the people of Kupang, which is very important to the Company and its joint venture partners.
As announced on 20 February 2013, the Kupang JV signed a formal Joint Operation Agreement for access to the port facilities for the export of Manganese by direct ship loading from the wharf.
The Joint Venture?s ship loading equipment can utilise the facilities to export in the region of 80,000t/month of processed Manganese oxide from the deep water port.
The Kupang JV will use its own equipment to bulk load manganese onto Handymax size vessels (35,000-55,000t).
With the final approval now in place the processing equipment previously purchased can be assembled at the site, following the site preparation expected to be complete in the coming weeks.
The purchase of locally mined and stockpiled ore from the Manganese Society of Kupang (Mn Society) can now be initiated in line with the Supply Agreement announced 7 January 2013.
The Mn Society represents the interests of local manganese miners in Kupang and is currently comprised of 52 members.
The Mn Society will undertake to procure the supply of a minimum of 30,000 tons of raw high grade ore per month to the Kupang JV.
Editing by Adianto P. Simamora