Vanguard Mining Corporation, a minerals company with interests in gold, copper, gypsum, limestone and manganese, has signed a definitive agreement with Indonesian company, Yupolo Resources, to acquire an 80% equity interest in the company and co-develop a 3500 hectare gypsum and limestone concession in Nusa Tenggara Timur, Indonesia. The gypsum deposits are estimated to be in excess of 30 million t, while the limestone deposits are approximately 400 million t. The proposed mining concession is just 4 km from the newly expanded Menanga Sea Port.
Turning limestone and gypsum into cement
Together the two companies plan to develop this concession in four stages, beginning with developing the mining concession to produce 2 million tpa of limestone and gyspsum. In the second stage, a clinker production facility of 250 000 – 500 000 tpa will be established to meet the needs of cement plants in the area. The projected investment in this stage is US$10 – 40 million. In the third stage, the companies will set up a mini cement plant with a capacity of 100 000 – 200 000 tpa. The investment range for this stage of development is US$20 – 50 million. This stage represents a stepping stone to stage four, in which the companies will set up an integrated cement plant with a capacity of 1 – 2 million tpa. This would be the first integrated cement plant in East Indonesia, and would serve the surrounding markets as well as export to northern Australia. The investment for this stage is put between US$240 million and US$400 million.
Choky Simanjuntak, Chairman and CEO of Yupolo Resources, said, "We are pleased to have reached this milestone in officially signing the definitive agreement 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."
Quang Le, Executive Vice Chairman of VNMC, said, "We are delighted to partner with Yupolo Resources to develop this mine and believe that the mineral quality and favorable logistics at this location will make our products very competitive in the regional Southeast Asian markets."
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/11092014/vanguard-mining-corp-plans-new-cement-plant-in-east-indonesia-462/