KAL Energy boosts its coal resource in Indonesia

Thermal coal explorer and developer KAL Energy (KALG-O) has expanded its resource at one of two concessions it holds near the Mahakam River in East Kalimantan, Indonesia, moving about 60% of the resource from the inferred to the indicated category.

The total resource on the Graha Panca Karsa concession has expanded to 248 million tonnes, up from the previously reported 204 million tonnes. Of that amount, 141 million tonnes falls in the indicated category with 107 million tonnes remaining in the inferred category.

The sub-bituminous coal has low ash and very low sulfur content, and is of medium calorific value, the company says.

More than 57% of the resource, or 142 million tonnes, lies at depths of less than 60 metres.

Seam thickness ranges from 0.5 meters to 8.8 meters, with an average of 5 meters across the Graha concession. Seam dips are shallow at about 5 to 15 degrees.

KAL Energy has identified three other seams on the concession but more work on their quality and geometry is required before they are included in a resource estimate. 

The next step is to nail down an exploration licence extension and secure a permit from the forestry department before the company can start the second phase of drilling.

More work is needed to move resources into the reserve category and update the project’s economics and the company’s mining plans.  

The concession can be accessed through a network of about 136 km of logging roads.  

KAL intends to sell its thermal coal products in Indonesia and export them to markets in India, China, North Asia and Southeast Asia.

The Delaware-incorporated company is trading at about 4.8¢ a share on Nasdaq’s OTC Bulletin Board.