Berau

The 5,000 hectares property is located 40 kilometres south-west of Tanjungredeb (Berau) and 350 kilometers north of Balikpapan, East Kalimantan, Indonesia.

Mining will be an open-pit operation undertaken by a contract miner. Equipment used will be conventional truck and shovel, with some blasting as necessary. Mined coal will be blended on site to meet customer specifications.

The mine pit will cover an area of approximately 124 hectares and is estimated to have 8.8 Mt of run-of-mine coal at an average strip ratio of 9.2:1.

The mine will be designed to target production of 1.5 Mt of coal in the first year, expanding to produce at a rate of 3 Mtpa in subsequent years. Mine life is targeted at 7-9 years.

Coal will then be transported by truck along a 30 km road (that needs to be constructed) to a barge port (also to be constructed) on the Segah River, where it will be stockpiled.

The port site will accommodate a 60,000 tonne stockpile, with capacity for expansion. Coal will be loaded onto 5,000 tonne barges by conveyor. Barges will then collect the coal and transport it 90 km the coast and then on to a trans-shipment point 30 km offshore, where the coal will be offloaded to ships for delivery to customers.

It is envisaged that the coal will be sold to one or more power station operators and/or industry consumers in South East Asia, as it is normal for coal of this quality sold from this region.