The Asia Miner

OCT-DEC 2015

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 32 of 71

October-December 2015 | ASIA Miner | 31 Indonesia MINING was expected to begin by the end of the September quar- ter at Aus Asia Minerals' Solok Iron Ore Project in West Sumatra. The company expected to have loaded the initial barge-load of material at Telok Beyer Port in Padang by late August bound for Krakatau Steel in Java. The iron ore for the initial barge shipment was from an 11,000 tonne high-grade stockpile at the Solok mine. Under an MOU ex- ecuted with PT Krakatau National Resources, the Solok project will deliver up to 300,000 tonnes to Krakatau Steel over 12 months. Aus Asia Minerals (AAM) has a 90% interest in the Solok project and has been focusing its efforts there rather than at the Painan Coal Project where it expects to start drilling and further mining studies once operations are under way at Solok. The company has appointed PT Britmindo to provide mine man- agement services. Britmindo has provided estimates on the mining operations at Solok and will oversee all mining operations. During the June quarter ASX-listed AAM made payments to the vendor of the Solok project of US$275,000 and as at June 30 had paid US$925,000 out of a total consideration of US$2.5 million. Also during the second quarter of 2015 AAM executed a US$5 million funding facility with TCA Global Credit Master Fund. The facility provided the company with an immediate drawdown of US$375,000 as part of a secured revolving loan agreement. Further drawdowns of up to US 5 million in total can be initiated by the company by the end of November with an option to renew for a further six months. During August AAM announced that it had established AAMTRAD Pte Ltd, a new company based in Singapore which will focus on sourcing, trading and fnancing of coal, iron ore and crude oil com- modities. AAM has a 33% interest in AAMTRAD with the other 67% held by fnanciers and local partners. The partners have established a funding package for up to US$5.5 million to fund shipments of coal initially and then spreading out to other commodities. AAM has provided a guarantee for the funding established for AAMTRAD through the issue of certain convertible notes which can only be exercised upon default of the main funding package. AAM managing director Robert Swarbrick says this is a positive move by AAM as AAMTRAD gives the company a separate additive income stream going forward. SUMATRA Copper & Gold expected to start pouring gold at its Tembang Gold-Silver Project in South Sumatra by the end of Sep- tember. The carbon-in-leach (CIL) process plant achieved practical completion in early September with waste material being fed into the facility eight weeks ahead of schedule. The project team has handed the process plant over to operations while permission has been granted for discharge into the tailings storage facility pending issue of the fnal B3 waste permit. Blasting has commenced at the underground and open pit mines under development following receipt of the fnal explosives permit. Achievement of these milestones brought forward the expected timing of the frst gold pour to late September. Portal access and ground support has been fully established at the fagship Belinau underground mine with blasting and decline development under way. Pre-strip mining has commenced at the high grade Siamang de- posit while de-watering and pre-strip blasting is under way at the Bujang pit. Blasting has also commenced at the Berenai open pit cut-back with ore continuing to be mined and stockpiled at the run- of-mine pad. Sumatra's managing director David Fowler says, "The construc- tion and operations teams have been outstanding in successfully delivering the Tembang project to this point, ahead of schedule with good safety performance. We are also appreciative of the support provided by the local government, community and our suppliers who have worked with us to achieve this important outcome. "The expected frst gold pour in late September, eight weeks ahead of schedule, will herald a new era for our company and pro- vide a signifcant boost to the local economy." The company has appointed a new general manager, Leonard Manurung. A mining engineer with an MBA, he has more than 20 years of resources experience and has held senior operational management roles in international companies, including PT Free- port Indonesia. Signifcant advances have also been made to bolster and expand the company's community engagement and community develop- ment initiative as well as strengthening the security team, systems and processes. The company said in a statement on July 29 that the power sta- tion at the CIL plant was operational, the three motor control centres (MCC) had been energized and the complete crushing circuit had been operated without ore. Concrete works, steel fabrication and installation had been completed. The mechanical equipment instal- lation was complete and SAG mill liners installed. The supervisory control and data acquisition (SCADA) system was operating and being commissioned. Initial shipment of Solok iron ore Sumatra Copper & Gold's Tembang project is near the west coast of South Sumatra. Gold production under way at Tembang

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