HANDINI RESOURCES LIMITED - ASX: HDI

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Description

The Company is an investment holding and management company based in Perth in Western Australia with operating subsidiaries in Indonesia and the British Virgin Islands. The Company was established as a coal mining and trading company on 9th August 2004. The Company owns and controls 60% of the fully paid capital issued by NTC, The other 40% is owned by another Indonesian company, PT Bara Adhipratama (“BAMA”).

Location

The 2,832 hectare Coal Concession is located approximately 20 km west of the city of Muara Bungo in Sumatra. It is about 280 km by road to the west of the city of Jambi and about 300 km to the east of the city of Padang. The city of Muara Bungo is about 5 hours by road from Jambi and about 6 hours by road from Padang.

Current Operations

Mining operations have only commenced ramping up to significant production rates since April 2007, with production prior to this having been conducted on a small scale. As such the coal deposit remains relatively untouched by mining operations. The geology of the deposit enables flexible mining operations using the truck and excavator methods. This results in the operation remaining flexible with regards to mine planning options. Mining activities commenced in the C Seam in the East area in April 2006. Total coal extracted from January 2006 up until December 2007 was 1.22 million Mt.

Resources & Reserves

There are three (3) major coal seams identified as mineable within the boundaries of the coal deposit. These coal seams are:

• A Seam;
• B Seam; and
• C Seam

Both A and B seams lie partially below C Seam, approximately 45m and 20m respectively, and are limited in extent with a total resource of 1.2 Mt and 0.9 Mt respectively. It is considered that they would incur too high a strip ratio to mine and therefore would not add significantly to the reserve. These seams have not been included in this reserve estimate, with only the coal in C Seam, which ranges in thickness from 2 m to 10 m, contributing to the reserve.

PROPOSED MINE-MOUTH COAL FIRED POWER PLANT PROJECT

The Company is reviewing the prospect of a Build, Own and Operate (BOO) 300 MW Mine-Mouth Coal-Fired Power Plant to be located within close proximity to Mampun Pandan, Kecamatan Rantau Pandan, Kabupaten Bungo Tebo, Province of Jambi, Sumatra. The proposed plant will consist of two (2) units of 150 MW. The plant will be designed with the most advanced technology which have a proven reliability and the least impact on the environment. The primary fuel used for this plant will be indigenous deep-seated low-grade coal taken from the Company’s coal mine that will be within close proximity to the proposed plant.

Mine For

Coal

Location of operation(s)

Indonesia

Address

125 Royal Street
EAST PERTH, WA, AUSTRALIA

Phone

(61 8) 9225 6534

Email

Website

http://www.handiniresources.com

Last Updated

5/4/2011