Pan Asia has established a “world-class partnership” with Kopex that paves the way for accelerated development of the company’s flagship TCM project, its chief executive Alan Hopkins said.
Having a closer engagement with a large, experienced underground coal operator with the capability to deliver TCM to production was a major step forward in advancing this project, he said.
“Kopex is a world leader in underground coal mining with the capacity to undertake mining operations as well as providing the required mining equipment,” Hopkins said.
“With its significant underground coal operating experience in Kalimantan, Kopex has recognised the value of our TCM project by identifying it as a priority for their involvement.
“We are now ahead of schedule on our deliverables for the project and as we move through to bankable feasibility study stage, we anticipate adding considerable value to our holding.”
Kopex Mining Contractors has provided an initial geological assessment of the resource and has the ability to complete conceptual, prefeasibility/feasibility studies and underground mine design through to provision of all mining equipment, underground mine construction and operation.
The agreement incorporates funding support from Kopex for the next phase of infill drilling, as well as the BFS, in return for pre-emptive rights to participate in the project, excluding the washing plant, power plant and sale of the coal.
Kopex is conducting preliminary studies on the project and is well advanced in this work, with results due next month.
The TCM project has an initial JORC-compliant resource of 53 million tonnes (inferred and indicated) of high calorific value coal (average 6550 kilocalories per kilogram). Being adjacent to PT Arutmin’s operating ATA mine, TCM also benefits from its proximity to well-established infrastructure, Hopkins said.