RE: Australian firm wins Indonesia contract of worAswin,
Do you expect this type of disclosure as part of the SA COW?
Does the COW require this type of disclosure?
The mining area has about 273 million tons of iron sand reserves, equivalent to about 33.6 million tons of pig iron, PT Jogja Magasa Iron's president commissioner Lutfi Heyder said.
Lutfi said the project would start operations after approval of the environmental impact assessment.
"We expect to start mining in 2011 and begin producing pig iron in 2012."
Jogja Magasa Iron aims to produce one million tons of pig iron per year, to be sold entirely to the domestic market.
"We will sell the pig iron to the domestic market, because the domestic fob (free on board) price is not too different from that of the international market," Lutfi said, adding that the current price for pig iron is about $450 per ton.
Jogja Magasa is now in talks with state steelmaker PT Krakatau Steel to supply the company with up to 100,000 tons of pig iron per year.
Purnomo said the mining project was expected to contribute tax revenues of $20 million per year and royalties of $11.25 million per year.
best wishes
Soccer