The Asia Miner

JUN 2018

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

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Page 15 of 51

the asia miner • volume 15 • issue 2 14 REGIONAL FOCUS: Indonesia Thiess has been awarded three contract extensions at the Bayan Resources owned Wahana coal mine, and the Arutmin Satui and Senakin coal mines in South Kalimantan, Indonesia. A three-year $280 million contract extension at the Wahana coal mine will see Thiess conƟnue to provide coal mining services including overburden removal, pit dewatering and coal hauling to port. CIMIC Group Mining and Minerals ExecuƟve and Thiess Managing Director, Douglas Thompson said that unlocking value for clients has been key in strengthening Thiess' partnership with Bayan Resources. "This extension reflects our strong capability and presence in Indonesia, and our ability to deliver flexible mining soluƟons", he said. During the contract term, the Thiess project team will mine approximately 6 million tonnes of coal and 74 million bank cubic metres (bcm) of overburden. A successful implementaƟon of an innovaƟve mining plan by Thiess at the Satui coal mine has also resulted in a $240 million contract extension. At the Arutmin owned, CLS-managed project, Thiess will conƟnue to provide mining services at the project's Hanoman West pit including overburden removal, coal mining, and port operaƟon support services over three years. The Satui contract involves mining approximately 7 million tonnes of coal and 83 million bank cubic metres (bcm) of overburden. AddiƟonally to the Satui coal mine contract extension, Arutmin has extended its partnership with Thiess at its Senakin operaƟons for $150 million. The two-and-a-half-year contract extension involves mining 5 million tonnes of coal and 52 million bank cubic metres (bcm) of overburden. CIMIC Group Mining and Minerals ExecuƟve and Thiess Managing Director, Douglas Thompson sees this as a great opportunity to conƟnue Thiess' long- standing relaƟonship with Arutmin. "Thiess has been the sole mining contractor of the Senakin Coal Mine since 2000, and we will conƟnue to bring our experƟse and knowledge of the site to extract the remaining reserves," he said. Thiess secures its position in South Kalimantan OperaƟons at the Senakin coal mine/ Wahana coal mine operaƟons Nusantara has increased the Mineral Resource esƟmate at its keystone Awak Mas Gold Project by 12% to more than 1.9 Moz of gold. The company announced posiƟve exploraƟon drill results for the eastern extension to the Awak Mas deposit. This followed high grade gold drill results from Awak Mas's satellite deposit, Salu Bulo. Further drilling at Salu Bulo and the eastern extension are under way. The overall Project in South Sulawesi is 100% owned by Nusantara through a seventh generaƟon Contract of Work with the Indonesian Government. The current total Indicated and Inferred Resource at 0.5 g/t gold cut - off for the Awak Mas Gold Project, which includes Awak Mas, Salu Bulo and related deposits, now stands at 42.6Mt at 1.40 g/t gold for 1.93 million contained ounces. Awak Mas's 1.93Moz Mineral Resource esƟmate (US$1,400/ oz opƟmisaƟon shell) is based on the first 25 holes of a 67-hole program. Within a US$1,200/oz opƟmisaƟon shell, the company has reported a 1.56Moz Mineral Resource esƟmate, which is a 71% increase on that reported previously. This highlights the potenƟal for a high resource to reserve conversion raƟo for the current definiƟve feasibility study. About 85% of the contained ounces within the Awak Mas deposit and about 80% of the contained ounces for the enƟre Project now fall in the Indicated Resource category and will be available for incorporaƟon into the coming Ore Reserve esƟmate. Nusantara's Managing Director, Mr Spreadborough told shareholders that with a significant proporƟon of the Mineral Resource now in the Indicated category, the company was increasingly confident of a high resource to reserve conversion raƟo. "This reaffirms the company's belief that the Awak Mas Gold Project will support a long-life open pit mining operaƟon," commented Mr Spreadborough. Nusantara's development strategy is for construcƟon of a large-scale, low-strip-raƟo open pit operaƟon with ore to be processed by convenƟonal whole-of-ore cyanide leaching. The Project has environmental approval and is favourably located in non-forestry land close to established roads, ports and grid power. Nusantara's second strategy is to grow the resource base and sustain a mining operaƟon beyond the iniƟal targeted life of 10 years. MulƟple drill-ready targets have already been outlined extending from the three main deposits and in other areas of the 140km 2 contract of work. NegoƟaƟons are also underway with the Indonesian Government on amendments to the Awak Mas contract of work, including fast tracking into a 33-year operaƟons and producƟon period. Oblique View Looking North-NorthEast. Extended Model >0.5g/t Au. Tanjung and High Wall Fault Traces (purple). Image source: Nusantara Nusantara hits 2Moz at Awak Mas

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