THE BOURSE WHISPERER: Kupang Resources (ASX: KPR) announced to the market the Kupang Joint Venture, in which the company holds a 55 per cent interest, has completed the acquisition of additional land in the Belu District, on the island of Timor in Indonesia.
In November 2012, Kupang entered into a binding term sheet to acquire 95 per cent of the issued share capital of a local Indonesian company, Indo Co, which is the legal and beneficial owner of an area of 926 hectares located in the Belu District and a granted production license.
The parties recently re-structured the acquisition, which resulted in the interest in Indo Co and the subsequent rights to the Production Licence to now being acquired directly by the Kupang JV, rather than Kupang Resources the company.
Location of Kupang project and local infrastructure. Source: Company announcement
“The acquisition of the granted Production Licence by the Kupang Joint Venture is a key step towards the commencement of manganese exports from the Joint Venture’s land position,” Kupang Resources executive director Tony Sage said in the company’s announcement to the Australian Securities Exchange.
“The permit is a crucial milestone in commencing production, as Indonesian law requires such permits to be in place before processing and exports can commence.
“This will now allow finalisation of the permit process.
“Once this permit is granted to the Kupang Joint Venture stockpiling and processing of manganese on the Kupang Joint Venture landholding can commence, with processing to occur utilising the Joint Venture owned processing plant already on site.”
The permit is located approximately 175kms northeast of the Kupang JV current land holding in the district of Kupang.
The JV owns a processing plant situated on its current landholding it claims to be capable of producing 30,000 tonnes of high-grade Manganese lump product per month.
Kupang explained manganese mineralisation is principally found in both the Bobonaro Complex and Ofu Formation.
The company said manganese generally occurs as sedimentary sub-units or sedimentary intercalations in carbonate sequences within the new permit area.
This manganese has been exploited by artisanal miners previously and occurs close to the surface.
Manganese occurrences in the district have been shown to contain high-grades of manganese with low levels of contaminants such as iron, aluminium and phosphorous.