Pan Asia Corporation has scored a US$1 million investment from international coal group Kopex for its TCM thermal coal project in Indonesia’s South Kalimantan. The funding will secure the next round of drilling through to a final feasibility study and is proof of the project’s potential to feed the growing Asian energy market.
Kopex has previously recommended the TCM project to be advanced to the final feasibility stage after it conducted an independent study which indicated the project’s viability.
TCM has a JORC resource base of 115 million tonnes, with the initial resource upgraded in August 2011. The overall exploration target for TCM is 200 million tonnes during the next 24 months. It contains high quality export thermal coal with an average calorific value of 6566 kcal/kilogram, 6.41% total moisture, 13.52% ash and 1.52% sulphur.
The 3440 hectare TCM project is about 250km south southwest of Balikpapan, adjacent to the ATA open pit coal mine owned by one of Indonesia’s largest coal producers PT Arutmin.
In June 2010, when operation and production approvals were granted, the project’s indicated and inferred resources totalled 30.7 million tonnes. The updated 115 million tonne resource was announced in October 2011.
In April 2011, Kopex agreed to co-fund the accelerated infill drilling program and the final feasibility study at TCM with Pan Asia, spending US$600,000.
The group has experience in underground mining space and has recommended to Pan Asia pursuing studies of access from an open cut high wall. It is likely that Kopex will become the mining contractor for the project. Completion of the final feasibility study for TCM is expected by the end of March 2012.