Churchill Mining

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Churchill Mining listed on the Alternative Investment Market (AIM) of the London Stock Exchange in April 2005 and is committed to growing shareholder value by becoming a leading minerals explorer and future miner at a time of accelerating commodities demand. Churchill's business plan is to leverage off the strong growth in demand currently being experienced in China and India for commodities which are used as feedstock in the ever expanding energy industries. Churchill Mining’s strategy is to explore and develop mining projects that will leverage off the current appetite for raw commodities which are used in burgeoning steel and energy industries in growing economies. Churchill’s main focus is its highly prospective thermal coal project located in the East Kutai Regency of Kalimantan, Indonesia. Churchill has also acquired the Sendawar CBM Project in East Kalimantan, Indonesia, which is in an highly prospective area for coal bed methane.

Churchill Mining targets completion of East Kutai feasibility review for Q2 2010

Wednesday, February 24, 2010
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Churchill Mining PLC (AIM: CHL) said it now expects to complete the feasibility review process for its flagship 75 percent held East Kutai coal project (EKCP)  in Indonesia in the second quarter of 2010. It will make a detailed statement on the project's economics and associated matters upon completion of that review.

In mid-December, the group announced the completion of the feasibility study for East Kutai, confirming a preferred 20 million tonne per annum production rate. The company was planning project construction work at EKCP to start in 2010, taking two years to complete.

The EKCP has a 2.481 billion tonne JORC resource of which 956 million tonnes has been classified as a probable reserve.  Churchill said in December it had put the project's infrastructure items - mine stockyard, overland conveyor, port/ship loader and power station - out to tender and this process is well advanced. The bids received had been well below predicted costs due to the resurgence in global manufacturing and engineering capabilities following the global financial downturn.

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As announced in September 2009, the company received several non-binding approaches relating to possible acquisitions of specific projects within Churchill.  It said today it is continuing to review these approaches, and its options with regard to the various funding and commercial alternatives for the EKCP and is working through an evaluation of these alternatives in order to maximise shareholder value. 

The feasibility study envisages that the EKCP coal will be transported from the mine, ultimately made up of three open pits, using a 160 kilometre overland conveyor  system comprising eight flights at a speed of 5 metres per second, powered by a coal-fired plant using EKCP coal.

Churchill in December appointed Pala Investments AG as strategic advisor to assess the company's current structure with a view towards increasing its operational and capital-raising flexibility. Pala is focused on the mining and natural resources sector.
 
In addition to appointing Pala, Churchill has engaged PricewaterhouseCoopers Indonesia to assist with assessing certain aspects of the company's current structure from a tax and financial perspective, including the impact of the implementation of the new Mining Law in Indonesia.


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Additional Information

Market:AIM
Sector:General Mining - Coal
EPIC:CHL
Latest Price: 124.00p  (0.00%)
52-week High:140.00p
52-week Low:56.50p
Market Cap:119.94M

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