Orpheus to ramp up production in Kalimantan
Monday, July 2 2012 - 04:40 AM WIB
Australia-listed firm Orpheus Energy (OEG) said that it has executed a life of mine Royalty Agreement with Indonesian mining contractor PT Debbia Mining, whereby OEG will receive US$8 per ton on all coal sales at its 51 percent owned B2 project in East Kalimantan.
It said that the mining contractor was currently undertaking some additional pre-drilling to finalize the mine plan and will shortly start mobilizing mining equipment to site which was expected to commence production in August with a monthly target of 30,000 tons.
"We are pleased to enter into this agreement with an experienced mining contractor. We can now recommence production at B2, and the royalty arrangement means the company assumes no financial risk with the royalty going straight to Orpheus' bottom line," Executive Chairman Wayne Mitchell said.
"This development progresses our Indonesian coal strategy of rapidly ramping up production in Kalimantan . Together with our Kintap ADK project, which is currently producing 50,000 tons per month, Orpheus will soon be producing at the rate of 80,000 tons per month once B2 resumes mining.
"The next step for us is to bring additional Kintap area satellite mines into production and we look forward to updating shareholders on developments"
The current JORC Coal resource at the B2 project of 0.95 million tons indicated and 0.l8 million tons inferred will provide an initial mine life of approximately three years.
Editing by Adianto P. Simamora