Pan Asia Expands Kalimantan Mine
Australian company Pan Asia Corporation Ltd (ASX code: PZC) announced on Wednesday that it has signed a memorandum of understanding (MoU), outlining the proposal to expand the main ATA open pit mine into the TCM concession.
It said the MoU was a result of the company’s discussion with the contracting company currently responsible for mining at a second open pit in the PT Arutmin ATA concession.
Pan Asia said upon further technical investigation, it is both parties’ intention to sign an agreement to cooperate in the mining and trading of coal. The agreement will outline in detail the key commercial terms, including the tonnage to be extracted, the mining rate, the timeline and the profit sharing arrangements.
Importantly, it (Pan Asia) will not bear any capital cost associated with the development of these open pit mining operations. It said it will also benefit upon the completion of the open pit mining as the finished open pit will allow the company to access to possible underground coal mining operations at TCM. It will also save “significant capital expenses” in developing these future underground operations.
Pan Asia CEO Alan Hopkins was happy with the progress as the company “will have near-term cashflow without bearing any of the capital costs, typically associated with developing an open pit mine.”
To asses the plan expansion to the neighboring open pit mine, the company’s drilling activities are now focusing on an area 1.6km x 1km, located adjacent to the ATA pit. The latest two holes drilled in this area returned significant coal intersections, it said.
Coal samples are being sent to PT Interfek Utama Laboratory Services in Banjarbaru, Kalimantan, which is a fully internationally accredited coal testing laboratory.
Pan Asia is a rapidly growing diversified resources company listed on the Australian Securities Exchange. It has offices in Perth, Australia and Jakarta. The company aims to be a major supplier of key resources into the expanding Asian markets. (Roffie Kurniawan)