Operations at Australia Oriental’s Indonesian coal project suspended

Kalimantan Coal
JOHANNESBURG (miningweekly.com) – ASX-listed Australia Oriental Minerals reported on Monday that operations at the Muara Teweh coal concession, in Indonesia, have been suspended, as a result of subeconomic returns.The company cited a combination of the weak global economic outlook and the complex geology resulting in lower-than-expected inferred coal resources.Australia Oriental Minerals said that its 30%-owned associate company, Asiatic Coal (ACPL), which owns the mining rights to Muara Teweh, had said that the suspension of operations would be reviewed at regular intervals, until conditions improved to the extent that operations may be restarted.The mining concession covers an area of about 4 005 ha, located in the Central Kalimantan province. The mining concession is located in an area of well-known Indonesian coal basins and within the known region of Anthracite/High Bituminous coal in Kalimantan.A drilling programme to delineate a resource in accordance with the joint ore reserves committee (Jorc) code over the central mining concession was completed in December 2008, with a total of 130 holes being drilled.During the same financial year, exploratory drilling programmes were also started in the two adjoining blocks over which ACPL has an option to acquire, with the aim to provide preliminary indications of coal mineralisation. It was anticipated that further drilling would be conducted over the areas where coal mineralisation is present to delineate a resource in accordance with Jorc code.
Edited by: Mariaan Webb

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