(MENAFN - ProactiveInvestors - Australia) Realm Resources (ASX: RRP) is a step closer towards starting mining operations at its flagship Central Katingan Ria thermal coal project after receiving in principle approval to upgrade its exploration forestry permit.
This supports the company's goal to start coal production for the project in Kalimantan, Indonesia, to begin production in 2013.
The In-Principle Licence granted by the Indonesian Ministry of Forestry is the last stage to the issuance of the Borrow and Use of Forest Area Permit, or Ijin Pinjam Pakai Kawasan Hutan (IPPKH), which allows mining to begin.
Following granting of the IPPKH, Realm will be able to start mining operations within its concession areas as well as to transport the coal and store it.
The In-Principle License was granted over the requested area of 3,058.25 hectares, with work proceeding on satisfying the conditions to start mining operations in the first 1,000 hectares of this area.
Realm is currently drilling in the project to upgrade certainty of the 102 million tonne Resource.
This will form the basis of the feasibility study with drilling results expected before the end of this year.
The Central Katingan Ria project's Base Case is designed to mine 1 to 1.5 million tonnes per annum (Mtpa) of coal ramping up to 3Mtpa within three years.
It is proposed to use a truck and excavator fleet to produce a thermal coal product for the domestic and export markets, initially over a period of 15 years.
Coal would be transported from the mine site to the Pegatan Anchorage at the southern coast of Central Kalimantan for loading to ocean shipping vessels and export. The total transportation distance to the anchorage (including road and barge) is approximately 450 kilometres.