Churchill Mining aims to bring forward the first stage of production at the East Kutai Coal Project in Kalimantan, Indonesia, by 12 months to the end of 2009.
The early completion of a scoping study has enabled the company to consider bringing production forward.
Churchill is now beginning the full feasibility study phase and has decided on a staged approach to developing the thermal coal mine.
The scoping study, which started earlier this year, has some very positive results. It detailed various alternatives for mine development, crushing and stockpiling at site, transporting the coal from site to port and the port facilities and port location.
After taking into consideration the likely long term price rise in diesel and other costs associated with the total road haulage option, the study concluded that a combination of haulage road and conveyor is the most profitable means for the final transportation system from mine to port.