SYDNEY (Yosefardi) – South East Asia Resources Limited (SXI) has maintained the Malala Molybdenum Project and continued discussions with provincial Government and other officials concerning all licenses and administrative matters. The Company holds 95% beneficial percentage interests in the project.
The Malala Project is located in the ToliToli Regency of Central Sulawesi Province, Indonesia, approximately 150km to the north of Palu. The project comprises five IUP concessions: PT IntiCemerlang, PT Promistis, PT Era Moreco, PT Sembilan Sumber Mas & PT Indo Surya. The total area forming the Malala Project is in excess of 240km2 spread across the five concessions all of which are located within 15km of the coast.
Since acquisition, SXI has worked diligently at compiling and reviewing the historical data and re-
initiating the exploration process. The majority of work has targeted Anomaly B, the key area of Rio Tinto/Santos exploration efforts in the 1970‟s and 1980‟s. The Company has significantly advanced its understanding of the Anomaly B prospect area, with detailed trenching and geophysical surveying making large contributions to this improved understanding.
The company has entered into negotiations with Indonesian parties with interests in the same area to join together to develop this project. The support of these incoming parties is expected to substantially enhance the projects ability to fulfil all of the requirements to get this project to production. This will effectively relaunch the Molybdenum project and provide a timetable to take the project to production with a suitable off take/technical partner. These arrangements are to be concluded in the next quarter with a view to commencing the financing or joint venture of the project in that quarter.
While the company has high expectations in relation to the Malala Molybdenum Project, it was decided to take a conservative approach and impair the related capital expenditure of this project at 30 June 2013.
Meanwhile, SXI reported, PT PAR coking coal mine is located near Balikpapan in East Kalimantan, Indonesia and has been under development by its wholly owned subsidiary Singapore based South East Asia Energy Resources Pte Ltd (SEAER).
It is proposed that all mining and engineering will be undertaken by SEAER Indonesian subsidiary PT UMES under the direct management of SEAER and will recommence under this structure by the end of March.
All coal off-take initially be domestic supply to large Indonesian Steel Works and will be
through SEAER Indonesian subsidiary PT United Mining Engineering Services has been able to negotiate an off-take agreement PT Pacific Bliss.
Pacbliss is a well-established trading company experienced in Coal and Minerals. Pacbliss have long term supplyagreements with the likes of Glencore, Krakatau Posco and Noble Energy.
The local Indonesian company which is wholly controlled by SEAER will have all the necessary licenses in place to enable tender pre qualification to take place for ongoing Domestic supply.