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Tuesday, 02 August 11
REALM RESOURCES TO ACQUIRE A 75% INTEREST IN THE KATINGAN RIA COAL PROJECT


COALspot.com - Scoping study at the Katingan Ria Coal Project, Central Kalimantan demonstrates positive technical and financial potential for the project. Initial shipment will come at Q2 201, says Realm Resources Ltd.

Realm focus  is  on platinum  group metals  ( PGM) in South Africa as well as bulk commodities abroad. In addition, the Company has an aluminium dross treatment plant located in Pietermaritzburg, South Africa.

The project has the potential to transform Realm into a thermal coal producer within the next 12 months in a nation that has an established coal industry and ideally located to export to the high demand Southeast Asian markets, Realm said in its sttement posted company's website.

Realm announced on 12 April 2011 that it has secured an exclusive option to acquire all of the issued capital in Kalres, a company incorporated in the Cayman Islands for an aggregate consideration of US$ 29.6 million and the issue of 15 million performance rights. Kalres is a party to a Master Agreement with PT SMAA, under which Kalres can acquire up to a 75% interest in an Indonesian coal company, PTKR, which holds the Katingan Ria concession (Katingan Ria Project). 

The Katingan Ria Project covers 5,053 hectares under Mining Business Permit for Exploration (IUP Exploration) No. 274 and is located in Central Kalimantan within the Katingan Hulu district, approximately 175km North West of the regional capital of Palangkaraya. Approximately 30- 45 km haulage logging roads will be used to haul the coal from the project site to the Katingan River. The barge to port route is approximately 420km on river to the coast. 

A conceptual plan for a 3Mtpa open pit project with capital expenditure estimated at about US$41 million (100%)  and operating costs in the order of US $40/t FOB (on mother vessel) are envisaged for Katingan.  This includes overheads, mining and haulage, crushing, barge transport and transhipping operations, the statment further said.

A marketing agency agreement has been established with Coeclerici Asia (Pte) Ltd (“ CCA” ) with Realm’s coal to be marketed as midium CV, low sulphur, sub bituminous coal  will be marketed as a Katingan product.

There is potential for first shipments as early as early next year.

Katingan product would be sold primarily into the power generation markets in India, China and domestically within Indonesia.  



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