Vanguard Mining Corporation (VNMC) has signed a Memorandum of Understanding to acquire an 80% equity interest in Yupolo Resources in exchange for a combination of cash and stock, and co-develop a 3500-hectare gypsum and limestone concession in Nusa Tenggara Timur, Indonesia.
Located in the district of East Solor, Solor Island, in the province of Nusa Tenggara Timur, the proposed mine spot is only 4 km from the new expanded Menanga Sea Port. The gypsum deposits at this concession are of high quality (purity of 85 – 95% CaSO4.2H2O) and estimated to be in excess of 30 million t, while the limestone deposits are approximately 400 million t. The two companies intend to develop this concession in four stages:
- Stage 1: Gypsum and limestone mining to produce up to 2 million tpa of gypsum and limestone by the second year of production for both local markets and exports. Yupolo Resources already has committed buyers.
- Stage 2: Clinker plant (capacity 250 000 – 500 000 tpa of clinker to meet the demand of cement plants in the local region).
- Stage 3: Mini cement plant with a capacity of 100 000 – 200 000 tpa cement (cement consumption in the surrounding areas is over 3 million tpa with double digit growth rate).
- Stage 4: Integrated cement plant with a capacity of 1 – 2 million tpa of cement.
"We are pleased to cooperate with Vanguard Mining Corporation to develop this concession and are confident that our products will be able to meet part of the growing demand of gypsum, limestone, clinker and cement for the domestic, as well as the export markets," said Choky Simanjuntak, Chairman and CEO of Yupolo Resources.
Quang Le, Executive Vice Chairman of VNMC, further noted: "We are very excited at the prospects of this development opportunity with Yupolo Resources and glad that we already have ready buyers for this high-quality gypsum product."
Adapted from press release by Rosalie Starling
Read the article online at: https://www.worldcement.com/asia-pacific-rim/02092014/vnmc-and-yupolo-resources-to-develop-a-gypsum-mine-in-indonesia-395/