SYDNEY (Yosefardi) – Killara Resources has entered into a binding agreement with PT Berkah Ciwi Lestari Kaltim (BCLK), an experienced Indonesian mining contractor, for the further development and coal production from its PT Borneo Emas Hitam (BEH) coal project in East Kalimantan in December 2013.
BCLK commenced mobilization of heavy equipment in late December 2013 for an immediate focus on over burden removal to expose coal for extraction, with production anticipated in the first quarter of 2014.
Management is now engaged in discussions with coal buyers and non-technical team engaged in IUP renewal process with well advanced application with regional authorities.
In Central Kalimantan, Killara has completed an initial field reconnaissance program at the PT Pagun Taka concession.
The legal team is assessing legal documents and permits for the concession. The management is preparing economic assessment of the mining concession before undertaking any further works.
Killara identified coal from three geological formations at Pagun Taka; the Montalat, Beral and Warukin.
Killara continues to assess new opportunities in Central Kalimantan, East Kalimantan, and South Sumatra.