Strike completes FS on Berau coal project
Production seen to start H1 2010
Thursday, June 11 2009 - 02:23 AM WIB
?The feasibility study focused on the development of an open-cut contract mining operation with production scaling up from 1.5 million tonnes per annum (MTPA) to 3 MTPA, with transportation 30kms by road to a new port for barging approximately 90kms down the Segah River to the coast and on to an established coal trans-shipment location approximately 30km offshore,? the company said.
The Berau Project currently has a JORC Code compliant Coal Resource of 20.8 MT of coal with a calorific value of 5,605 kcal/kg gross as received (GAR), comprising 1 .8 MT of Measured Resource, 8.6 MT of Indicated Resource and 10.4 MT of Inferred Resource.
The company also has an exploration target within the Berau Project estimated to contain additional mineralization of 10-15 MT of coal. The calorific value from the mine is 5,400-5,600 kcal/kg (GAR) with low sulphur 0.66%, as received (AR); ash 7.3% (AR) and total moisture 16.6% (AR).
Strike is targeting the commencement of construction of mine and infrastructure facilities in August 2009, with first production in May 2010. Based on the current JORC Resource and the exploration target, the company is targeting 7-9 years? production from the mine.
Strike is currently undertaking a tender process with respect to the provision of contract mining services, the construction of infrastructure at the mine and barge port sites and for the road from the mine to the port. Strike is also awaiting environmental approvals and the conversion of the mining concession from Exploration to Production/Operation status, as provided under Indonesia?s new Mining Law.
Meanwhile, the company said it has decided to drop JV and offtake plan with an undisclosed Indian firm as Strike considered the terms and condition now unacceptable.
?As the parties were not able to reach an agreement within the stipulated exclusivity period, Strike is now able to consider project financing and off-take opportunities from other parties. In this regard, Strike is continuing to explore securing coal off-take agreements with potential customers.? (denny)