Multi-faceted Australian company Altura Mining is one step away from obtaining the final approval required for mining to commence at its Tabalong coal project in South Kalimantan.
The company has received operation production approval for its two mining permits that make up the project for a term of 20 years with two 10 year renewal options. This means Altura can now begin the process of obtaining the Forestry Land Use permit which will pave the way for mining operations to start at the 4411 hectare project.
Tabalong has a JORC-compliant resource of 13.4 million tonnes of high grade thermal coal and Altura aims to increase the resource during its next phase of exploration at the two tenements. During this last quarter of 2011, further assessment and planning for coal product transport will continue.
It’s hoped the Tabalong coal project will begin production in 2012 at an initial annual production rate of 400,000 tonnes of premium grade thermal coal with the plan to ramp up to 750,000 tonnes. The operation will consist of a surface mined product delivered to an offtake point on the Barito River, about 100km west of the mine site.
The company recently completed an inspection of third party infrastructure including haul roads, stockpiles and a river loading facility near the project location and negotiations are proceeding with a view to utilizing or sharing this infrastructure.
The location of the project also lends itself to satellite development of other mining permits, with numerous other smaller resources in the area that have the potential to be operated simultaneously to provide increased tonnages and blended coal products.
Altura is considering a number of potential nearby projects that could be amalgamated into the development. The company is continuing to pursue partnerships and opportunities with an aim of expanding the coal holdings in the Tabalong region and providing access to further coal resources in Indonesia and South East Asia.