KAL Energy Concessions
Overview
- KAL Energy has secured rights to two large coal concessions, both situated near the Mahakam River in North Eastern Kalimantan.
- Block 24 - 10,000 Ha (24711 acres)
- Block 16 - 10,000 Ha (24711 acres)
- Governmental signing was achieved on Sep-14th, 2006. Title & ownership structure has been extensively reviewed by HHP, the in-country affiliate of Baker & McKenzie International.
- KAL Energy is using the same proven legal structures as have been successfully deployed by several listed entities, including:
- Finders Resources Ltd (AIM)
- Asia Gold Corp (TSX)
- Indo Mines Ltd (ASX)
Maps
Kalimantan (Borneo)
Concession Map
Neighbouring Operations
Photo of operational open cast coal pit.
The area hosts several large-scale opencast thermal coal exporters including PT Trubaindo (Banpu) and Gunung Bayan producing 5 Mt/yr.
Local experience, supplier base and logistics support can be readily leveraged. Tapping into this existing infrastructure and low-cost transportation via the Mahakam River enables KAL Energy to:
- Rapidly Scale Production
- Minimize front-loaded Capital Expense
- Drive down long-term unit cost
Access Roads
Photo of a legacy access road on Block 24.
Previous timber operations have left a network of some 136 km of logging roads that provide good access across the Block 24.
This greatly improves efficiency of both exploration activities and development preparation, at the same time minimizing capital commitments to basic infrastructure.
River Barging
8000 tonne barges provide low cost, year round transportation to sea.
A key element in the economic viability of thermal coal export is site-to-sea transportation costs.
River barging via the Mahakam River provides year round, low cost transportation to sea ports.
Existing coal-loading facilities are located along the river, connecting the coal sites to the river transport system.
Photos of the several barge loading facilities operational along the Mahakam River.