Western Mining signs MoU with Pancareka
Tuesday, April 30 2013 - 10:50 AM WIB
ASX-listed Western Mining Network Limited announced on Tuesday it has entered into a Memorandum of Understanding (MoU) with PT Pancareka Utama Engineering (PUE) on April 30, 2013 to have the exclusive right to conduct due diligence and detailed exploration for a period of 90 days on PUE?s Exploration Licences, a potentially high calorific value thermal coal tenements in South Kalimantan.
?This MOU with PUE is another major step forward for the company and is a progression of the company?s strategy to obtain exposure to highly prospective and scalable coal projects. We are excited to have secured an area with significant exploration upside adjacent to an existing mining operation which offers the potential for rapid commencement of mining with no forestry or infrastructure issues,? WMN?s Executive Chairman Christopher J. Clower said in a statement to the exchange.
The tenement makes up of two licenses, namely IUP No. 545/011/IUP-E/D.PE/2010 issued by the Regent of Tanah Bumbu with a total area of 5,149 hectares (?ha?), for a period of 7 years, ending 25 January 2017 and IUP No. 545/017/IUP-E/D.PE/2010 issued by the Regent of Tanah Bumbu with a total area of 398.8 ha, for a period of 7 years, ending 26 January 2017.
PUE is currently producing thermal coal under Production Licence IUP No. 188.45/467/DISTAMBEN/2012, which has a total area of 198.3 ha. The allocated area which WMN has the right to explore and if warranted mine is adjacent to but does not include this existing Production area.
PUE is currently producing approximately 15,000 tonnes of thermal coal per month and targeting to reach approximately 30,000 tons per month from the aforementioned tenement, with typical coal specifications of 6,957 Kcal/kg CV (adb), Total Moisture 7.7%, Inherent Moisture 4.8%, Sulphur 0.75%, Ash 11%, Fixed Carbon 41.7% and Volatile Matter 42%.
"Should the Company and PUE be satisfied with the results from the detailed exploration, PUE shall upgrade the IUP Exploration Licences to IUP Production Licences and both WMN and PUE shall execute the Joint Production and Coal Sale Agreement," the company said.
Editing by Er Audy Zandri