Pan Asia says Indonesian coal project feasible

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Pan Asia says Indonesian coal project feasible
23 May 2012 15:07 GMT
London, 23 May (Argus) — Australia-based Pan Asia has confirmed that its flagship thermal coal project Transcoal Minergy Coal (TCM) in Indonesia’s South Kalimantan province is technically and financially feasible, following a study.

The study was carried out by Indonesian mining equipment group PT Kopex Mining Contractors.

The project’s output is likely to reach 1.5mn t/yr over a 15-year period, or 22.5mn t in total, while the base-case mine plan is currently based on 18mn t of sellable coal.

Pan Asia, which specialises in pre-development resource projects, estimates that TCM’s run-of-mine (ROM) coal will have calorific value of 5,044 kcal/kg, but the calorific value will increase to 6,200 kcal/kg GAR once the coal is upgraded to sellable product. Sellable reserves stand at 18mn t — after washing — but will increase to 22.5mn t after current infill drilling.

“TCM product is characterised as a high volatile bituminous coal with low chemical impurities making it environmentally suitable for export,” the company said. The material will be suited to power generation, cement manufacture or general industry.

The project’s Jorc resources are estimated at around 128mn t.

Total capital expenditure of the project is likely to be around $179mn with average operating cost expected to be $52/t.

“This is a major milestone for the company with our flagship project receiving such a positive independent reviews,” Pan Asia chief executive Alan Hopkins said.

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