Outokumpu, Krakatau Steel to get involved in Jogjakarta Ironsands Project

Australian firm AKD Limited announced on Tuesday that a unit of Finnish metal producer Outokumpu and Indonesia?s top steelmaker PT. Krakatau Steel had entered into a MoU with the owners of Jogjakarta Ironsands-Pig Iron Project regarding the project?s development.

Under the MoU, Outokumpu Technology Australasia will be carrying out a review of all technical and engineering parameters regarding mineral processing, plant design and infrastructure aspects of the project.

Indonesian state-owned Krakatau Steel intends to be an offtake partner for a substantial portion of pig iron produced from the project.

AKD has right to acquire 70 percent of the project subject to completion of certain performance hurdles, including financing the project?s resource definition program and bankable feasibility study.

Based on the previous exploration reports and technical studies, geological due diligence conducted by Mackay and Schnellmann Pty Ltd concluded that there is an exploration target at Kulon Progo, Jogjakarta, ranging from 336 to 560 million tones of ironsands. (alex)