Pan Asia, Kopex in underground coal mine deal
Monday, April 18 2011 - 04:24 PM WIB
The agreement incorporates funding support from KOPEX for the next phase of infill drilling, as well as the bankable feasibility study, in return for pre emptive rights to participate in the project (excluding the washing plant, power plant and sale of the coal).
KOPEX is currently undertaking preliminary studies on the project and is well advanced in this work, with results due next month.
Pan Asia CEO Alan Hopkins said having a closer engagement with a large, experienced underground coal operator with the capability to deliver TCM to production, was a major step forward in advancing this project.
"KOPEX is a world leader in underground coal mining with the capacity to undertake mining operations as well as providing the required mining equipment," Hopkins said.
"We are now ahead of schedule on our deliverables for the project and as we move through to bankable feasibility study stage, we anticipate adding considerable value to our holding."
The TCM project has an initial JORC compliant resource of 53Mt (inferred and indicated) of high calorific value coal (average 6550 kcal/kg). Being adjacent to PT Arutmin's operating ATA mine, TCM also benefits from its proximity to well established infrastructure.
The TCM project covers 3,440Ha in the Mantewe District, Tanah Bumbu Regency, South Kalimantan Province. The project has a Government-approved IUP production license, granted for 15 years which is extendable for a further two ten-year periods under Indonesia's new mining laws.
Mining of the project will be underground, using long-wall mining techniques. KOPEX are currently well advanced with their preliminary engineering study as to the expected optimum scale of operations. (alex)