Project
Iron Ore Mine-Indonesia
PREAMBLEIndonesia with its vast coal resources is also rich in several other commodities like, Nickel Ore, Iron Ore, Oil and others. Iron ore mines are located in the south of Kalimantan Island.
MINE DETAILSOur associates have obtained mining rights for the life of the mine in one such mine in South Kalimantan. Land has already been transferred in the name of the mine owner and all licenses have been issued. The mine is now ready to go into production in all respects to start/continue the mine operation with immediate effect. Further Details as below:
a. Land: has been cleared and test pits have been opened and ore seams are clearly visible.
b. Area: 65 hectares
c. Resource: As per geological reports, surface reserves are 1.2 million tons, further electrical and geo surveys are underway to determine total reserves on surface and underground, these should be completed shortly.
d. Development: Land clearing, internal mine roads, site office and infrastructure have been completed.
e. Logistics: Distance from mine to main road is 100 meters and distance from mine to loading jetty is 35 km. Jetty to ship loading area is around 2 km's for a 35,000 DWT vessel. It would be more for deeper draft vessels.
f. Grade: Hammetite 70%, Magnetite 30%, Fe 52-58%. This could be improved to 62-63 % after crushing and washing.
PROPOSALOur associates are looking for a technical and business proposal, where they are willing offer 50% equity on a profit share basis.
Upfront payment: USD 4 million, Expenses for equipment and mining will be buyer’s responsibility. Minimum monthly quantity mined should be in excess of 50,000 mt.
Estimated cost of mining which includes Royalty, local exp, Crushing/Beneficiation plant and transportation to export vessel on FOB basis is around USD 30/mt.
Current market value of same grade ore is USD 130/mt.
Profitability for 1 million tons is over USD 40 million. We expect after final surveys total resources may increase in excess of 2 million tons (WOG).
TRADING OPPORTUNITIESThere are several adjoining mines and trading/offset arrangements can be made in quantities of excess of 50,000 mt/month. There will be options of acquiring mining rights for mines in the vicinity.
RECOMMENDATION:Mines with such low production costs are hard to come by & shipping costs to China would be cheaper than from other destinations, making this investment very profitable.
Miner currently has many people inquiring about this mine. I believe if we move very quickly we can get a "FIRST MOVER ADVANTAGE".
Please discuss with your principals urgently as we should not lose the opportunity to move quickly and engage in commercial discussions with the miner. I propose that we send them some sort of a letter of intent subject to discussions and commercial negotiations.
We are looking for a technical & financial business proposition, which can be mutually discussed & agreed.
MINE DETAILSOur associates have obtained mining rights for the life of the mine in one such mine in South Kalimantan. Land has already been transferred in the name of the mine owner and all licenses have been issued. The mine is now ready to go into production in all respects to start/continue the mine operation with immediate effect. Further Details as below:
a. Land: has been cleared and test pits have been opened and ore seams are clearly visible.
b. Area: 65 hectares
c. Resource: As per geological reports, surface reserves are 1.2 million tons, further electrical and geo surveys are underway to determine total reserves on surface and underground, these should be completed shortly.
d. Development: Land clearing, internal mine roads, site office and infrastructure have been completed.
e. Logistics: Distance from mine to main road is 100 meters and distance from mine to loading jetty is 35 km. Jetty to ship loading area is around 2 km's for a 35,000 DWT vessel. It would be more for deeper draft vessels.
f. Grade: Hammetite 70%, Magnetite 30%, Fe 52-58%. This could be improved to 62-63 % after crushing and washing.
PROPOSALOur associates are looking for a technical and business proposal, where they are willing offer 50% equity on a profit share basis.
Upfront payment: USD 4 million, Expenses for equipment and mining will be buyer’s responsibility. Minimum monthly quantity mined should be in excess of 50,000 mt.
Estimated cost of mining which includes Royalty, local exp, Crushing/Beneficiation plant and transportation to export vessel on FOB basis is around USD 30/mt.
Current market value of same grade ore is USD 130/mt.
Profitability for 1 million tons is over USD 40 million. We expect after final surveys total resources may increase in excess of 2 million tons (WOG).
TRADING OPPORTUNITIESThere are several adjoining mines and trading/offset arrangements can be made in quantities of excess of 50,000 mt/month. There will be options of acquiring mining rights for mines in the vicinity.
RECOMMENDATION:Mines with such low production costs are hard to come by & shipping costs to China would be cheaper than from other destinations, making this investment very profitable.
Miner currently has many people inquiring about this mine. I believe if we move very quickly we can get a "FIRST MOVER ADVANTAGE".
Please discuss with your principals urgently as we should not lose the opportunity to move quickly and engage in commercial discussions with the miner. I propose that we send them some sort of a letter of intent subject to discussions and commercial negotiations.
We are looking for a technical & financial business proposition, which can be mutually discussed & agreed.
Proposed By-
A.K.Jain
Tapuriah Jain & Associates
Chartered Accountants
21, Skipper House, 9, Pusa Road,
New Delhi-110005
Mobile : 98-100-46108
Email: caindia@hotmail.com
Tapuriah Jain & Associates
Chartered Accountants
21, Skipper House, 9, Pusa Road,
New Delhi-110005
Mobile : 98-100-46108
Email: caindia@hotmail.com
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