Kupang Resources and local miners enter deal on supply agreement
Monday, January 7 2013 - 02:30 AM WIB
ASX-listed Kupang Resources said that Kupang Joint Venture has entered into a letter of intent with the Manganese Society of Kupang (Mn Society) on the supply of high grade manganese ore to its Kupang project in West Timor.
The company in the statement said that Kupang Joint Venture has also completed the acquisition of a process plant with the capacity to produce up to 30,000 tons per month of Manganese lump product suitable for direct feed into Ferro- or Silico-Manganese smelters per month.
The Processing Plant located at the Kupang Project in which the Company has a 55% interest will be used to process the high grade ore acquired pursuant to the supply agreement.
Under the deal, the Mn Society comprising of 52 members of local manganese miners in Kupang will undertake to procure the supply of a minimum of 30,000 tons of raw high grade ore per month to the Kupang Joint Venture.
The Mn Society is expected to commence supply of raw grade ore to the Joint Venture in January 2013.
As previously announced, representative sampling analysis results of the local product show impressive grade in excess of 85% Manganese oxide (Mn02) with grades of Manganese of 55% (Mn02 86%), Iron (Fe), 0.9% Alumina (A1203) 1.4% Phosphorus (P) 0.07%.
Executive Director Mr Tony Sage said ?Kupang Resources is pleased to announce the achievement of these major milestones by the Joint Venture which strongly indicates the potential of the Kupang Project to deliver production in the near term now realisable. We are now focusing on finalzing an agreement to export the ore from Kupang.?
Editing by Adianto P. Simamora