Indo Mines to Commence Concentrate Production at Karangwungi Plant
Resources Wednesday, 02 May 2012 15:25 Written by Hatman Bintang
MELBOURNE, Indonesia Today - Indo Mines Ltd is going to commence production of final concentrate from the Karangwuni Demonstration Plant within the next few weeks.
PT Jogja Magasa Iron, the 70%-owned subsidiary of Indo Mines, has made significant progress in completing the plant’s construction works. The primary circuit has been commissioned and approximately 20,000 tons of material have been treated through this circuit.
Dry commissioning of the secondary circuit identified a number of engineering and fabrication issues which requires modification and repair.
“The upgrade of this circuit is now largely complete and we expect to commence production of final concentrate within the next few weeks,” the company said on its quarterly report.
Regent of Kulonprogo has recently approved its Environmental Impact Assessment (AMDAL) report in relation to the Jogjakarta Iron Project. The approval has been received for several key documents which cover the entire mine life of the Iron Project and include the Environmental Impact Analysis (ANDAL), Environmental Management Plan (RKL), and Environmental Monitoring Plan (RPL).
Indo Mines has sold its Mangkok Coal Project, South Kalimantan to focus on the Jogjakarta Iron Project. The project has captured an eye from several major investors. Credit Suisse recently has been appointed to assist Indo Mines with funding, while Rajawali Group has acquired 57.32 million shares in Indo Mines. Sampoerna Group also reportedly interested in investing the project.
Mitsui Mining and Smelting plans to build iron and steel factory in Kulon Progo, Yogyakarta province also rumoured to invest in the project.
Indo Mines has mandated Credit Suisse (Australia) Ltd to assist with funding alternatives for the development of the Iron Project. (bintang@theindonesiatoday.com)
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