Orpheus provides updates on various projects
Monday, March 18 2013 - 11:22 AM WIB
ASX-listed Orpheus Mining Limited recently stated that it targets to ramp up production at Kintap ADK (Alam Duta Kalimantan) project to reach 50,000 tons per month in the near term.
Having sold the first coal from the mine in November 2012 and signing coal sales offtake agreement with an Indonesian steel company between 8,000 and 10,000tpm, the company recorded 44,025 tonnes mined and around $1.25m sale last December.
The company said in a presentation material released on Monday that the JORC Resource of 3.45 million tonnes announced this February confirms the potential for minimum five years production at 50,000tpm, allowing longer-term offtake agreements to be signed.
The company also said that it plans to commence production at nearby production asset and to ramp up its production to 50,000tpm, and invigorate operations of the OEG trading division.
"In the short term, we plan to acquire large coal resource project, targeting 50Mt ? 150Mt, in addition to pursuing further exploration success at the Papua Project," the company said in a recent presentation.
In the medium term, Orpheus said it plans to consolidate mining at South Kalimantan projects ? steady production rate of 200,000tpm, execute appropriate coal off-take agreements with domestic and export buyers, as well as increasing coal trading to 100,000tpm.
In South Kalimantan, the company has signed with PT Citra Bara Prima for a 195 hectare coal production project, located adjacent to one of PT Arutmin?s major operating coal mines and approximately 6km from Orpheus? Kintap ADK project.
Exploration target of 2 ? 4.5Mt is set with the resource hosting a minimum of two coal seams varying in thickness from 4 to 12 metres, near surface.
"Tenement boundary currently being adjusted with the local authority to include a northern section of ~140 hectares, which holds a very significant coal seam, where the company is likely to commence mining," it said, anticipating mining at a rate of 50,000tpm.
The company is also undergoing exploration program at its B34 Project, located around 90km north west of Long lkis. The company targeted exploration of 5-10 Mt of coal at the calorific value of 7200 to 8100 Kcal/kg.
Attained coal samples signify two types of coal. B3 is of low ash (1.5%); low total moisture (8.3% ar); energy content of 7,123Kcal/kg, while B4 is of low ash (1.9%); low total moisture (6.5% ar); energy content of 7,235Kcal/kg.
"Conversion of B34 Exploration KPs into Exploitation IUPs is scheduled for 2013, while mining from B34 is planned to double OEG?s total production out of the area by 2014," it said.
Besides its Papuan project, Orpheus has progressed plans to expand the Strategic Alliance with PT Mega Coal with an ongoing acquisition program underway, while a number of projects have been identified for possible acquisition located in the Kintap area of South Kalimantan, and other areas, being in advanced legal due diligence.
Overall, Orpheus targeted production rate to grow to 2,000,000 tons per year in Indonesia.
Editing by Er Audy Zandri