Sakari sees a long way to start production at Western Leases
Wednesday, February 20 2013 - 02:46 AM WIB
SGX-listed coal miner Sakari Resources said its ?Western Leases? concession area, which borders with its producing Sebuku mine in South Kalimantan, may start production in the next 3-5 years.
Discussions with local community, provincial mayors and regional politicians have begun and it has bagged a positive reaction to the proposals. 2014 is the window for submitting the license applications and it might take 3-5 years process, the company said.
The company acquired Western Leases area in October 2007. The company has over the past few years conducted an ongoing exploration program on Western Leases which has to date resulted in a JORC compliant resource of 800 million tons (indicated 420 million tons and inferred 380 million tons).
In January 2009, CFO James Carter told Petromindo.Com that the mine might start coal production in 2012, initially producing 10 million tons per annum (MTPA), ramping up to 20MTPA in ?medium term?.
On December 18, 2008 the company announced scoping study on the leases, which envisaged a significant stand-alone mining operation with a buildup in coal production to a capacity of 20 million tons per annum and a 20-year mine life.
According to the company, the estimated capital cost is US$860 million over the mine life.
Editing by Reiner Simanjutak