Jogjakarta Liquid Iron Project - Indo Mines · 2012. 3. 14. · Jogjakarta Liquid Iron Project....
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Ozmine ConferenceJakarta 2009
Jogjakarta Liquid Iron Project
This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial positionand performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities. This document should be read inconjunction with any public announcements and reports (including financial reports and disclosure documents) released by Indo Mines Limited. Thesecurities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividendswill be paid on the Shares or that there will be an increase in the value of the Shares in the future.
The information in this report that relates to Exploration Results and Mineral Resources of the Jogjakarta Liquid Iron Project is based on informationcompiled by Mr Philip Welten, who is a member Australian Institute of Mining and Metallurgy. Mr Welten is a full-time employee of Indo Mines Limited. MrWelten has sufficient experience, which is relevant to the style of iron ore mineralisation and type of deposit under consideration and to the activity,which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves’. Mr Welten consents to the inclusion in the report of the matters based on his information in the form and context inwhich it appears.
Further details on risk factors associated with the Company’s operations and its securities are contained in the Company’s prospectuses and otherrelevant announcements to the Australian Stock Exchange.
Some of the statements contained in this release are forward-looking statements. Forward looking statements include but are not limited to, statementsconcerning estimates of recoverable pig iron, expected product prices, expected costs, statements relating to the continued advancement of theCompany’s projects and other statements which are not historical facts. When used in this document, and on other published information of theCompany, the words such as “aim”, “could”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-lookingstatements.
Although the company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk anduncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could causeactual results to differ from these forward-looking statements include the potential that the Company’s projects may experience technical, geological,metallurgical and mechanical problems, changes in product prices and other risks not anticipated by the Company or disclosed in the Company’spublished material.
The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of anyrecipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriateinvestment for them in light of their personal circumstances, including their financial and taxation position.
Overview of Liquid Iron Project
Large & well tested (to JORC Standard) Iron Sands Mineral Resource inJava, Indonesia, equivalent to 65 Million Tonnes of Iron
Project NPV of $658 million with average net cash flows of $162M perannum and operating cost of $150 per tonne (@$350/t Pig Iron)
Further substantial upside in project life, scale and operating costs
Scoping Study shows high margin, lowest cost quartile
Excellent Local Infrastructure – power, water, rail, port
Proven Technology being applied
Binding Contract of Works signed with ability to mine and process ironsands throughout Indonesia
Experienced Board and Management with proven project developmentskills in the iron ore and steel sectors
... Potential Lowest Quartile Cost Producer
Project Location Plan
Global JORC Resource
605 million tonnes of magnetite bearing sediment grading 10.8% Fe, which equatesto an equivalent contained iron of 65 million tonnes
Of the global resource, there is 273 million tonnes of magnetite rich surface sanddown to 7 metres grading 14.2% Fe, sufficient for over 20 years of mining
Global resource based on 929 holes for a total of 14,468 metres of air core drilling
Location Mineralisation occurs on the surface, allowing for low cost resource estimation and
mining. The deposits are located close to key infrastructure:
Railways 500,000 kva power line Transport infrastructure
TechnologyThe simple and proventechnology proposed is similarto that successfully employedat Bluescope Steel’s Iron Sandsoperation in New Zealand
Ownership Indo Mines 70% PT Jogja Magasa Mining 30%
Market Pricing Comparison
Iron Sands Mining and Concentrate Production (9 MT per year)Road, Rail and Sea Transport (Total of 4 Mt per year)Low Cost Thermal Coal (2 MT per year for Process and Power)Limestone Mining (30,000t per year)Power Plant (350MW)Port Facilities – coal, concentrates, pig ironSuppliers Construction Mining Contractors Employment Training Facilities – Environment Management, Mining, Farming,
Rehabilitation methods, Process Plant\ Environmental / Social Maintenance Medical
Rph 6 Trillion InvestmentRph 18 Billion per year in IndonesiaJob OpportunitiesFactorySupport companies (catering / cleaning / security etc)ShopsMedical ClinicTraining CentreEducationImproved InfrastructureReliable Power SupplyImproved Water supplyImproved roadsConsultation with Local Government and people to determine longterm requirements
After Project Approval (All farmers)Seeds, equipment, livestock and assistance to build wind breaks and set up crops
During Mining on their land (1 to 2 years)Payment for Loss of IncomeSupport for livestock
After MiningSeeds, equipment and assistance to build wind breaks and set up crops again
Compensation to Farmers
Snowden Report on Resource Grade Variability No significant variability both along the resource and with depth
ProMet Engineers Scoping Study Project readily supports 1 million tpa Plant - $658 million NPV
URS Initial Environmental Study No unmanageable community or environmental issues
Pre-Feasibility Study for Liquid Iron Processing Alternative technology proposed for confirmatory testing
Contract of Works approved First approval in 10 years, security of land tenure
Engineering & ConstructionCommissioning& Production