Orpheus?s second mine production to commence September

By Romel S. Gurky

Australia-listed miner Orpheus Energy Limited plans to commence production of its second mine in East Kalimantan in September as part of the company?s target to produce and sell up to 2 million tons per year.

?Already, we have one operating mine in South Kalimantan (ADK), and our second mine, where we expect production to commence during the month of September, is located in East Kalimantan (B2),? Wayne Mitchell, Executive Chairman said in the report submitted to the ASX.

?We are planning to be in the position of producing and selling at the rate of 2 million tons per annum (mtpa) within a short time-frame. Moving forward, our target is to triple that rate over the next few years, as we further grow our production capabilities, through a strategic mine acquisition and infrastructure development program.?

Orpheus took over the management of the ADK mine from 1 April, 2012, with production planned at 50,000 tons per month (tpm).

From 1 April 2012 to 30 June 2012, 33,453 tonnes of coal were purchased locally and sold on a trading basis, with profits of A$135,000 attributable to Orpheus, adding that additional sales contracts for 67,700 tons are in hand, with 27,700 tons shipped during July, from both mine production and trading.

?The remaining 40,000 tons is expected to be shipped during September,? it said.

Production at ADK has been delayed as a result of flooding caused by unseasonal rains in July and August, and the Ramadan holidays.

?However, in September we expect to resume normal mining activities,? he said, adding that another two tenements in South Kalimantan are now under title due diligence review.

Editing by Adianto P. Simamora