Executive Summary
Churchill Mining was founded to leverage Asian appetite for commodities in the steel and energy industries. They have acquired the Sendawar Coal Project in East Kalimantan, Indonesia and are exploring the South Woodie Woodie manganese project in Western Australia. The company has also an exclusivity agreement with PT Techno Coal Utama in regard to the highly prospective thermal coal project located in the East Kutai Regency of Kalimantan, Indonesia.
Company History
The company listed on the AIM market in April 2005.
In May 2007, Churchill reached agreement to purchase a 75% interest in the East Kutai Coal Project from PT Techno Coal Utama. This followed on from an exclusivity agreement which was signed in March 2007 and subsequent due diligence carried out by Churchill.
Current Events
The company has announced that it has 1.4 billion tonnes of coal resource[1], with seams of up to 33m[2], and that 550 million tonnes has a strip ratio of 2.23:1[3]. It hopes to start mining in Q4 of 2009, and to mine 3m tonnes in the first year. The resource is about 70 miles from the sea, but communications are difficult. Initially, it hopes to use barges on the river system, but long term it hopes to build a conveyor.
The company will need cash to build the mine, but Pala Investments have been building stake (currently 26%[3]) and may be keen to finance the mine. Another investor, Indo Setubara Limited ('ISB') has recently taken a 6% stake.
"ISB, a company managed by Advaita Partners Limited ('Advaita'), is aiming to become a preferred fuel supply partner for Indian power producers."[4]
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