Realm’s Katingan Ria Coal Project (KR) lies approximately 450 km west of Balikpapan and 160 km northeast of Palangkaraya (the capital of Central Kalimantan), near the town of Tumbang Semba in Central Kalimantan, Indonesia. Notable aspects of the Katigan Ria Project are:
PT Katingan Ria coal (4,200 Kcal/Kg GAR) is a low rank, sub-bituminous thermal coal with low sulphur and nitrogen contents which complies with the Argus Indonesian Coal Index (4,200 GAR)
KR is a shallow, near-horizontal, multi-seam deposit with JORC Code (2012) compliant Coal Resources of 87.5 Mt (6.5 Mt Measured, 44 Mt Indicated and 37 Mt Inferred) including Probable Coal Reserves of 27.4 Mt, within a structurally simple and a low overall stripping ratio (2:1 to 3:1 initially) environment.
Base case project NPV (10%) valuation of US$57m based on a US$40.00/t long term coal price and US$32.24/t FOB cash cost forecasts
Coal reserves and the valuation above have been prepared based on an export operation.
1 Refer to Realm’s ASX announcement on 9th May 2017, section 3 for a summary of the financial model, material assumptions and disclosures in relation to the production target on which the NPV valuation is based
During 2011, Realm completed due diligence and ultimately acquired a 51% interest in the PT Katingan Ria Project. In August 2011, Realm announced an initial Inferred Coal Resource of 40.1 Mt for the southern area as part of its scoping study. Activities completed as part of the scoping study included field mapping, validation of the previous work and drilling of 28 holes in the southern portion of the Project to establish the economic potential of the area.
A further 32 holes were drilled between January and November 2012 predominantly within the southern portion of the concession. In 2013, Realm completed a Feasibility Study for an open-cut coal mine with up to 3 Mtpa production capacity.
In May 2017, Realm reported updated open pit Coal Resources and Reserves within the Katingan Ria Project.