Peter Sondakh Joins Jogjakarta Iron Project

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Tuesday, 20 December 2011 07:08

Written by Hatman Bintang

Peter Sondakh, Joins Jogjakarta Iron Project

Theindonesiatoday.com - Rajawali Group, controlled by Indonesian tycoon Peter Sondakh, acquires 19.9% shares of Indo Mines Ltd for $13.2 million.

Rajawali purchases 57.3 million Indo Mines Ltd shares at $0.23 per share. The placement includes the Rajawali Group providing the company with a pre-payment of $5 million on or before December 23, 2011.

"The significant cash injection from Rajawali Group provides cornerstone funding to the company to assist in completing construction and commissioning of the demonstration plant at Karawuni, additional testwork required for development of the iron sands project and completion of project finance due diligence," said Indo Mines to ASX this morning.

This is a surprise because local government officer said recently that Sampoerna Group would join the project.

Indo Mines Ltd controls Jogjakarta iron project. A feasibility study for the Jogjakarta Iron Project has been completed, confirming robust cash margin, Indo Mines Ltd said in August.

The project, located 30-KM from Jogjakarta, was awarded to Indo Mines in 2008 under a contract of work (CoW). The company has 70% interest in the project, with the 30% JV partner, PT Jogja Magasa Mining.

Indo Mines said the staged development of the project is initially focused on the production of 2 million tons per annum of iron concentrate, whilst finalizing the technical design of a 1 million tons per annum pig iron plant with the large technology provider Outotec.

Key project economics include capital cost (inclusive of contingency and working capital) of US$158.3 million, operating costs (cash cost) of US$24.2 million, and IRR (before tax) of 44.5%. "At spot iron ore pricing and forex rates, the project has an IRR of 83.1% before tax," said Indo Mines in a briefing to investors. (bintang@theindonesiatoday.com)

Peter Sondakh Rajawali Group Jogjakarta Iron Project

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