21st Apr 2009 07:00
21 April, 2009
Churchill Mining Plc
("Churchill") or ("the Company")
Churchill Selected as Potential Coal Supplier to PT Cirebon Electric Power
Churchill Mining (AIM: CHL) is pleased to announce its fully owned subsidiary, PT Indonesia Coal Development (ICD), has been selected as a prospective thermal coal supplier to Indonesia's PT Cirebon Electric Power (CEP), which is building a 660 megawatt power plant in West Java.
Churchill Mining, through its Indonesian incorporated subsidiary ICD is developing the East Kutai Coal Project ("EKCP") in East Kalimantan which has a JORC resource of 1.4 billion tonnes of thermal coal.
CEP has confirmed in a letter to PT Indonesia Coal Development that after evaluating its coal specification, ICD has been registered on its list of qualified coal suppliers for its power plant, currently under construction in Cirebon, West Java.
PT Cirebon Electric Power is an independent power producer which is building a 660 megawatt coal fired power plant, due to start operations in 2011. Japan's Marubeni Corporation holds a 32.5% stake in CEP.
CEP has previously indicated that the power plant will require up to 3 million tons of coal per year.
The registration entitles ICD to bid to supply coal to the power plant when it is required. In order to remain qualified to bid for the supply contract, ICD will provide data on an ongoing basis.
Under a 30 year contract, the Cirebon power plant will supply electricity to the state electricity firm Perusahaan Listrik Negara (PLN).
Churchill Mining CEO, Paul Mazak commented:
"It is a significant milestone for Churchill to have been selected as a potential supplier of coal to PT Cirebon Electric Power's West Java power plant when it is commissioned in 2011. With such a large and growing resource at our East Kutai Coal Project, Churchill Mining is more than capable of meeting the considerable demand that the plant requires. This option is one of many that Churchill Mining is exploring as it moves forward to bringing the project into production."
For more information:
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Churchill Mining Plc Managing Director - Paul G. Mazak +62 81510539186 / + 62 21 39832398 |
Blue Oar Securities Shane Gallwey +44(0)20 7448 4000 Olly Cairns +61 (0)8 6430 1631 |
Pelham PR Candice Sgroi / James Macfarlane +44 (0) 20 7 337 1533 +44 (0)7894462114
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Notes to editors
Churchill Mining Plc listed on AIM in April 2005.
East Kutai Coal Project
In May 2007 Churchill announced a sales agreement had been entered into to purchase a 75% interest in the East Kutai Coal Project from PT Techno Coal Utama. Churchill has now extended the size of the project by 200 square kilometres by acquiring a 75% interest in the abutting tenements to the west of EKCP from the Investmine Group of Indonesia. Resource drilling continues along with detailed scoping and pre-feasibility work.
In 2008 the Company released an updated JORC Resource Statement defining 1.4 billion tonnes of thermal coal reserves and resources.
Sendawar - CBM
The Sendawar CBM project in Kalimantan, Indonesia, covers more than 800 square kilometres of prospective ground and lies in close proximity to two operating open-cut coal mines. The project is located approximately 50 km from the Mahakam River.
During Churchill's coal exploration programme, data collected during geophysical and resistivity work, along with data collected from previous oil and gas exploration in the area, indicated that the area was highly prospective for Coal Bed Methane.
Churchill (70% of the CBM project) along with its Indonesian partner RMU (30%) were granted Indonesia's first CBM JEA license in September 2007. The CBM project has the potential to host Gas-in-Place of 5.6 trillion cubic feet. Churchill is currently conducting further studies on the CBM project before starting detailed field work.
South Woodie Woodie
Given the increased prospectivity of South Woodie Woodie and Churchill's increasing focus on its Indonesian coal and coal bed methane projects, the Company sold 80% of the project to Australian company Spitfire Resources Limited ("Spitfire"). Spitfire, which listed on the ASX on the 12th December 2007, has the option to purchase the remaining equity in the project but must spend AUD$1.5 million on exploration. Aside from its large shareholding in Spitfire, Churchill also retains a price-indexed mining royalty over the South Woodie Woodie project.
About PT Cirebon Electric Power
Indonesia's PT Cirebon Electric Power, is an independent power producer, which is building a 660 megawatt coal-fired power station in Cirebon, West Java.
Indonesian coal miner Indika Energy has a 20% interest in Cirebon Electric, while Japan's Marubeni Corp has a 32.5% stake, Korea Midland Power Co. Ltd holds 27.5% and Samtan 20%.
The power plant, which is due to start operations in 2011, is expected to cost about $750m and will sell electricity to state supplier Perusahaan Listrik Negara (PLN) under a 30-year contract.
ENDS
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