Strike is pleased to announce the completion of a feasibility study for its Berau Thermal Coal Project (Berau Project) in East Kalimantan, Indonesia.

The feasibility study focussed on the development of an open-cut contract mining operation with production scaling up from 1.5 Mt per annum (Mtpa) to 3 Mtpa, with transportation 30kms by road to a new port for barging approximately 90kms down the Segah River to the coast and on to an established coal trans-shipment location approximately 30km offshore. 

Based on the current JORC Resource and the exploration target the Company is targeting 7–9 years’ production from the mine.

The study has confirmed that the Berau Project has the potential to generate an annual operating surplus of approximately US$33m, with:

·                total capital cost of approximately US$19m;

·                average operating costs of approximately US$41 per tonne;

·                a  projected coal price of approximately US$52/tonne, FOB ship;

·                3 Mt peak production per year;

·                a run of mine coal product of medium calorific value of 5,400-5,600 kcal/kg GAR with low sulphur - 0.66%, as received (AR); ash - 7.3%, AR and total moisture - 16.6%, AR; and

·                a development timetable of 8 months from receipt of development approvals to production.

Please refer to Strike's market announcement for further details about the Completion of Feasibilty Study.