Churchill Mining plc has announced details of the 'significant progress' made on the transport options it is finalising in order to fast-track its East Kutai Coal Project (EKCP) in Indonesia to production in 4Q 2009.
Infill drilling continues on site and is on target to upgrade much of the JORC resource of 1.42 bt of thermal coal resource to ‘mineable’ by the end of 2008.
New independent studies verified by the company have concluded that a combination of road and river barge transport is now possible and should be the most capital cost-effective and quickest initial access method to transport the coal from the site.
The new studies concluded that access to the Senyiur River, which is a tributary of the Mahakam River south of the EKCP, can be used to transport the coal down to the Mahakam River for transshipment and onto multi-user coal ports at the coast. This access route was previously thought to be restricted.
The newly surveyed Senyiur River route could enable shipping of up to 7 mtpa of coal, starting with delivery of up to 3 mtpa, which is the increased target for the first full year of production.
A new multi-user coal barge port is currently being built on the Senyiur River by a third party. Churchill is in discussions with the company constructing the river barge port to gain access to the facility. It is also in discussions with the owners of current and proposed multi-user coal ports on the coast. Access to these would significantly reduce Churchill's project capital costs.
The company continues its detailed work on a number of options for the 20 mtpa full-production scenario to transport the coal to a new dedicated port, including a conveyor system....
