Orpheus? ADK coal project to produce 50,000 tons monthly

By Alexander Ginting

Australia-listed miner Orpheus Energy (OEG) said that the company has finalized an updated mine plan for Alam Duta Kalimantan (ADK) thermal coal project with the production is planned at the rate of 50,000 tons per month from April 2012.

The OEG, entitled to 50% of the net profits from the ADK coal mine operations, said that it was analyzing cost of production at the ADK thermal coal project and plans to achieve a minimum A$15 per ton cash profit margin at ADK.

?We are excited that Orpheus? new coal production can provide anticipated cashflow from the ADK project. Our next step is to bring B2 (block 2) back into production as we target a rate of 1,000,000 tons per annum from the company?s projects by the end of 2012,? OEG?s Executive Chairman Wayne Mitchell said.

The coal will be sold in the spot market while negotiations with long-term offtake parties are finalized.

OEG earlier announced that it had secured rights to a 50 percent equity interest in ADK mine.

Editing by Adianto P. Simamora