The company said the Central Kalimantan project was shaping up as a simple, open cut operation that would supply low ash and low sulphur coal ideally suited for modern Indian and Chinese power generation.
The reserve estimates are based on previously reported JORC coal resources of 89Mt, together with realistic mining, metallurgical, economic, marketing and royalty assumptions.
Commenting on the results, Realm chairman Richard Rossiter said the estimate paved the way for possible financing and development.
“We are pleased to achieve this important project milestone, with sufficient reserves now defined for well over 10 years of operation,” he said.
Mining and logistics options studies are advanced, paving the way for the completion of the feasibility study for potential 10-plus year, 2.5 million ton per annum coal operation.
The planned operation consists of an open cut haul back mining method using hydraulic loaders and rear dump trucks to dump both in-pit and ex-pit.
Coal is transported from the pit by 60t road trucks 45km to a stockpiling and barge loading facility on the Katingan River.
Barges will then transport coal 435km from the stockpile area to the river mouth for transhipment into coal ships for delivery to market.
The coal is planned to be sold unwashed for a long-term price of $52 per tonne.
