Geo Energy Resources has amended its long-term Life of Mine coal purchase agreement with ECTP to supply more 4200 GAR thermal coal for the lifespan of Geo Energy’s Sungai Danau Jaya (SDJ) mine.
Under the amended agreement, the group has increased its supply to ECTP from the annual rate of 4 million tonnes to 7 million tonnes. Thermal coal of 4200 GAR is to be delivered from Geo Energy’s SDJ coal mine and ECTP will increase the prepayment from US$20 million to US$40 million.
Geo Energy intends to set aside 1 million tonnes of coal for Indonesia’s domestic market obligation to cope with rising demand for coal.
On December 16, 2016, the group completed the acquisition of a 98.73% stake in Tanah Bumbu Resources, adding 44.4 million tonnes of 4200 GAR coal to reserves. It has also recently negotiated with Sunrise Wealth Success regarding its proposed acquisition of PT Parisma Jaya Abadi (PJA). Geo Energy has arranged for a reduction of the purchase consideration due to its previous coal mining cooperation agreement for PJA and possession of relevant technical data.
Production increases at Martabe
PT Agincourt Resources, the operator of Martabe Gold-Silver Project in North Sumatra, produced 310,550 ounces of gold and 2,424,537 ounces of silver in 2016, up 2.6% from the previous year when it produced 302,449 ounces of gold and 2,534,486 ounces of silver
The company has attributed the increase to the Martabe Improvement Program (MIP), which is aimed at progressively improving ounces of gold recovered and reducing costs in a sustainable manner, so as to increase the margin per ounce of gold produced.
The operational area is centred on the Purnama open-cut mine and a conventional carbon-in-leach (CIL) gold ore processing plant with annual design capacity of 4.5 million tonnes.
There are six defined mineral deposits at Martabe. Purnama is the largest, and the first to be mined with mining at the nearby Barani deposit scheduled to commence soon.
Agincourt intends to launch an IPO this year. If it proceeds it will be one of 14 expected IPOs this year on the Indonesia Stock Exchange.
Focus on Sihayo Pungkut study update
The focus of Sihayo Gold in 2017 is to update the 2014 feasibility study for the Sihayo Pungkut Gold Project in North Sumatra. The project is located within a Generation VII Contract of Work (CoW).
The aim of the review is to identify broad areas of potential for economic improvement and/or risk reduction. The key initial areas of focus are alternative processing routes for high grade/low recovery material within the existing resource; an independent geo-metallurgical review; and an updates of assumed operating and capital cost assumptions for current market conditions.
Sihayo has been advised that power shortages are no longer an issue in North Sumatra and there will be grid power available to the project.
The company also intends to continue with ongoing permits and approvals required and prepare the project for potential development.
In December 2016 the company received the construction permit from the Director General of Minerals & Coal within the Ministry of Energy & Mineral Resources. This major permit allows the company to progress the project subject to necessary project funding.
Barisan to sell Indonesian interests
Barisan Gold Corporation is selling its 80% equity interest in each of its Indonesian subsidiaries, PT Gayo Mineral Resources and PT Linge Mineral Resources, via a conditional sale and purchase agreement (CSPA) with a private Indonesian company.
The company said that the sale proceeds would be used to finance its lithium projects in the USA and to review other opportunities in technology metals. The private Indonesian company will pay Barisan a total of US$1 million.
One Asia to list Awak Mas on ASX
One Asia Resources is working on a prospectus in preparation for an ASX listing of the Awak Mas Gold Project held by Awak Mas Holdings Pty Ltd as a standalone vehicle. The company aims to undertake the listing in mid-2017
As part of any listing process, it is envisaged that One Asia’s ownership would be distributed to shareholders by way of an in specie distribution.
At the Awak Mas project a technical review of historic geological, metallurgical and feasibility work has been completed and a new resource estimate is expected based on the new geological model.
In January Indonesian national power provider PLN completed a transmission survey to deliver power to site confirming grid power will be available in 2017/18 to support project power needs. One Asia is awaiting the economic assessment which should detail more formal pricing arrangements.
West Wits optimistic about Derewo River
The Board of West Wits Mining remains optimistic of a successful outcome in its bid to obtain all clear and clean certificates for the IUP and forestry permits pertaining to the Derewo River Alluvial Gold Project in Papua Province.
PT Tobacom Del Mandiri (TDM), which is part of the PT Toba Sejahtra group, is undertaking this process as part of an agreement with West Wits. Toba has indicated that it is continuing in the process of delivering the all clear and clean certificates.
Toba has recently reported on several meetings with high level officials in which the path to achieving clean and clean IUP certification was formulated and agreed.
Churchill files annulment request
The directors of Churchill Mining and its subsidiary Planet Mining Pty Ltd advise that on March 31, 2017, following a detailed analysis of the ICSID Award of December 6, 2016 with its solicitors Clifford Chance LLP, the company lodged an application to annul the Award under Article 52 of the ICSID Convention.
n the annulment application, the company claims that the award is the product of a process that was tainted by a range of serious departures from fundamental rules of procedure and fairness and manifest excesses of power by the arbitrators.