Processing of an initial 5000 tonnes of raw iron sand from Asia Resources Holdings’ mine in East Java is under way. The company’s subsidiary PT Dampar Golden International began trial production two weeks ago, and has kicked off a marketing campaign both locally and internationally to target customers for its iron sand.
At this initial production stage, the company will sell low concentration of processed iron sand, with the ultimate aim to provide high-quality iron concentrates at a low cost to be exported to medium-size steel makers in China and other Asian countries.
Asia Resources says it wants to set up refinery plants near the mine in the longer term, in order to filter the iron sand and improve its concentration and quality. The company holds a 55% interest in PT Dampar Golden International which owns the exclusive rights to manage the site.
The mine covers an area of 1195 hectares in East Java’s Lumajang, on the island’s south coast. The unprocessed iron sand has an average concentration of 20.25%, but after screening and refining the concentration is expected to increase to around 62%.
PT Dampar Golden says it initially aims to produce up to 800 tonnes of unprocessed iron sand daily and increase that to 10,000 tonnes daily resulting in 6000 tonnes of iron concentrate once the screening and refinery plants are in operation.