Coal was previously located by borehole drilling during the feasibility stages.

It is believed the company has only 1m of overburden to remove before it will hit coal reserves.

Jatenergy recently secured a $A100,000 loan from a substantial shareholder in order to rework the Jongkang minesite.

Production from the Jongkang I and Jongkang II projects came in at about 35,000 tonnes last year.

Jongkang is located in East Kalimantan about 25km from a major hub of Indonesia’s coal industry at Samarinda.

Jatenergy aims to operate the Jongkang projects at increased capacity upon receiving third party investment and is in discussions with a number of interested parties.