South East Asia Resources to restart production in May
Thursday, May 1 2014 - 01:14 AM WIB
ASX-listed firm South East Asia Resources Limited reported on Wednesday that it will recommence production from PT Pola Andhika Realtor (PAR) coking coal project in East Kalimantan.
The project has secured IUP Production Licensing and has all required infrastructure in place for immediate mine production, including camp, mining equipment, haul road and processing crush facilities, the company said.
The hauling road distance from the boundary of the PT PAR concession is 32 kilometres to the jetty facility (which has a port weight bridge and belt loading conveyor capacity of 1000Mt per hour).
Loading of coal onto export coal vessels is estimated to take 10 hours.
Production has commenced during December 2013 with delays through the later part of December and January due to the wet season and contractor equipment delays, the company said.
The company has finalised during the period an agreement to acquire and take over the mining contractor, mining equipment and workforce and undertake all mining direct. As part of the take over, the company through its Indonesian operating entity PT UMES has commenced remobilisation onsite for production commencement first week of May 2014.
The Company has also completed preliminary agreements for the adjoining coal concession, which will provide continued production on completion of mining from PAR.
Finalisation of the domestic off-take arrangements have been undertaken with the coking coal for steel mills to be barged from the port of Telen, it added.