Indo Mines Limited, through its Joint Venture Company PT Jogja Magasa Iron, owns a 70% interest in the Jogjakarta Iron Project located approximately 30 kilometres from the major city of Jogjakarta, Indonesia. Access to the site is via bitumen roads. There are also rail lines and high voltage power lines servicing the area.
The Project centres on a 22 kilometres long by 1.8 kilometres wide stretch of beach between the Kulon Progo and Serang Rivers. The area within the Project boundaries is considered extremely marginal for farming with only minor areas that support traditional farming. The Company believes the Project will have a positive impact on these activities with the rehabilitation support proposed.
In November 2008, Indo Mines signed a Contract of Work with the Indonesian Government which provides security of tenure over the property and agreed guidelines for the development and operation of the Project. A feasibility study for a 2 million tonne iron project was undertaken during 2011. The intention is to commence dry mining surface sands on the COW area. A probable ore reserve of 163.5mt at an average grade of 13.7% Fe for the surface sands has been defined by CSA Global. Mining is scheduled to produce 2.0Mt of concentrate per annum at 55% Fe.
Indo Mines has recently received its final environmental approval for the company’s Environmental Impact Assessment (known as AMDAL) in relation to the Project. This important milestone provides the green light for the Project to proceed within the specified boundaries of the submission.