Kupang Resources: Bulk sample taken for export approval under new regulations
Wednesday, February 19 2014 - 12:40 AM WIB
ASX-listed Kupang Resources Ltd, which is focused on the rapid development of its 55 percent owned Kupang Project Joint Venture in Indonesia?s East Nusa Tenggara Province, announced Wednesday the delivery of 300 kg raw ore samples for testing at an authorized laboratory in Jakarta on 17 February 2014. These samples have been requested by the Indonesian Ministry of Energy and Mineral Resources.
The recent Indonesian regulatory changes for the exportation of minerals which came into force on 12 January 2014 effectively bans the export of a number of raw materials including manganese (Mn). The new law requires that to be exported, manganese must be processed into a concentrate exceeding 49 percent contained manganese metal. At its Bolok plant site, Kupang has a processing plant and testing facility capable of producing such a concentrate near to Kupang?s deep water port of Tenau, where the company?s bulk ship loading facilities await the first processed manganese for bulk export.
The 300 kg raw Mn ore was sourced from the growing raw ore stockpile at the company?s Bolok site where its commissioned processing facility await the increase in raw ore deliveries from the manganese mining industry in the region. The recent changes to the export legislation reduce the potential paths to market for the manganese mining industry in Kupang. Unless raw ore is processed to a concentrate containing in excess of 49 percent manganese metal it must only be sold to the domestic market and cannot be exported.
The Kupang Project Joint Venture was asked to prepare 300kg of Mn samples consisting of 12 samples with 4 individual 25kg samples representing the 3 physical types of manganese oxide that are found on Kupang, namely:
1. Cucur - alluvial ?river pebble? style of manganese oxide
2. empe - secondary layered manganese oxide found in clay
3. rimer - primary massive manganese oxide.
The testing of these samples is required to enable the Indonesian Ministry of Energy and Mineral Resources to formally approve Kupang?s facility as being authorized to produce a concentrate suitable for export in line with the new legislative changes. The authorities have indicated acceptance of the facility but require the formal testing of raw ore to provide the written authorization required for export formalities to be finalized. On the company?s knowledge no other manganese exporter has received such authorization nor has been asked to participate in such trials. Without this authorization under the new regulations it is Kupang?s understanding that no manganese can be exported.
The company expects that this testing will take 2 weeks. The company also expects that the receipt of formal notification will remove the previous constraints on raw manganese ore deliveries to its facility at Bolok and that these will increase towards the design plant capacity of 30,000t per month. The guidance on the start of shipping remains April/May 2014 provided the approvals are received prior to this date.
The Kupang Project is located in (Kupang) West Timor, in the Indonesian province of East Nusa Tenggara Province, a region well known globally as a source of high-grade Manganese ore. The project is located 13km by road from the planned processing area. The process area is only 3km by road from the port facilities of Kupang, where it is proposed ore from the Kupang Project will be shipped.
Editing by Reiner Simanjuntak