South East Asia Resources still retains Sulawesi molybdenum project

By Alexander Ginting

ASX-listed firm South East Asia Resources Limited reported on Wednesday that it has maintained the Malala Molybdenum Project and continued discussions with provincial Government and other officials concerning all licenses and administrative matters.

The company holds 95% beneficial percentage interests in the project.

The Malala Project is located in the ToliToli Regency of Central Sulawesi Province, approximately 150 km to the north of Palu. The project comprises five IUP concessions: PT IntiCemerlang, PT Promistis, PT Era Moreco, PT Sembilan Sumber Mas & PT Indo Surya. The total area forming the Malala Project is in excess of 240km2 spread across the five concessions all of which are located within 15km of the coast.

The company has entered into negotiations with Indonesian parties with interests in the same area to join together to develop this project. The support of these incoming parties is expected to substantially enhance the projects ability to fulfil all of the requirements to get this project to production. This will effectively relaunch the Molybdenum project and provide a timetable to take the project to production with a suitable off take/technical partner. These arrangements are to be concluded in the next quarter with a view to commencing the financing or joint venture of the project in that quarter.

While the company has high expectations in relation to the Malala Molybdenum Project, it was decided to take a conservative approach and impair the related capital expenditure of this project at 30 June 2013, the company said.