Churchill Mining

East Kutai Coal Project

Background
The East Kutai Coal Project is a world-class thermal coal deposit, with a JORC Mining Reserve of 961 million tonnes and a JORC Mining Resource of 2.730 billion tonnes.  The feasibility study was completed in September 2010. 

 
 
Project History
The project is comprised of four contiguous coal concessions covering an area of 350km2, with the resource as currently defined situated within two of the four concessions.

Churchill Mining Plc and its Indonesian partners the Ridlatama Group intend to increase the project coal production rate by up to 10mtpa to 35mtpa. Coal production from the Northern Pit would increase from 20mtpa to 25-30mtpa and production from the Southern Pit would remain at 5mtpa.

Churchill’s feasibility and development work has identified that planned mine facilities at the Northern Pit have the capacity to support a mining production rate of 40-45mtpa. In this context, Churchill has executed project optimization studies which show that the overland conveyor, which will transport the coal from the Northern Pit, has an enhanced capacity of 25-30mtpa, an increase of 5-10mtpa. 

In addition to the Northern Pit production, and further to the MOU signed with PT. Perusahaan Listrik Negara (PLN), the Indonesian state electricity firm, in April 2010, Churchill continues to work on plans for the purchase of 5mtpa of coal from the Southern Pit, which would fulfill Churchill’s Indonesian Domestic Market Obligation (“DMO”). PLN is now reviewing the potential to utilize its coal drying and enhancement technology on the project’s coal, which, in testing, upgraded the coal from sub-bituminous to bituminous, considerably increasing its value.

Churchill also continues to work closely with its strategic adviser, Credit Suisse, in reviewing development options for the project. The optimized feasibility study forms the platform for Credit Suisse’s work as it evaluates Churchill’s options for the project and the next stages in its development.

 
The Sendawar Coal Bed Methane Project

Background
The Sendawar Coal Bed Methane Project is located in the established coal production region of East Kalimantan, Indonesia.

The CBM Project covers more than 800 square kilometres of prospective ground in close proximity to the operating coal mines and with potentially more than 5 trillion cubic feet of natural gas. Churchill has initiated discussions regarding the eventual development of this project with international oil, gas and CBM companies for the provision of technical assistance, off-take agreements and potential joint ventures.

Investments

The South Woodie Woodie Manganese Project

HOLDING IN SPITFIRE RESOURCES (18.45%)

Spitfire Resources Limited (Australian Securities Exchange Ticker: SPI) is an Australian minerals company focused on the exploration and development of raw materials for the carbon steel and energy sectors.

Originally established in 2007 as a spin-off of the Australian manganese assets of the AIM-listed coal company, Churchill Mining PLC, Spitfire has developed a diversified minerals portfolio comprising: 

the South Woodie Woodie Manganese Project, located in the heart of an emerging manganese province in the East Pilbara region of Western Australia, where it has defined an initial JORC compliant manganese resource inventory at the Tally-Ho Deposit and is aggressively exploring for other manganese deposits;

an emerging thermal coal portfolio in Tasmania, located close to established infrastructure including Rail, Roads and Ports; and

a nickel-copper and platinum group elements (PGE) exploration project in the Northern Territory. 

Visit the Spitfire Resources website

THE DIRECTORS

David Quinlivan - Chairman

Mr Quinlivan is a Mining Engineer and Principal of Borden Mining Services. With almost 30 years experience on projects throughout the world, Mr Quinlivan is familiar with all aspects of resources developments from grass roots exploration through to bankable feasibility reviews and detailed mining programmes. He is currently Chief Executive Officer of Mt Gibson Mining Limited, a mid-tier iron ore producer in Australia.

Mr Quinlivan is a Fellow of the Australian Institute of Mining and Metallurgy, Fellow of the Financial Services Institute of Australia, Member of the Mining Industry Consultants Association and Member of the Institute of Arbitrators & Mediators Australia. He is also a Non Executive Director of ASX-listed gold producer Avoca Resources Ltd. Mr Quinlivan is responsible for board performance and bringing technical excellence to Churchill Mining Plc.

Faroek Basrewan - Non-Executive Director

Mr Basrewan specialises in dealing with the various levels of Indonesian central, provincial and local government. A graduate in law from Indonesian Christian University, Mr Basrewan has had a long and distinguished career in general mediation and dispute resolution, government and regulatory relations within Indonesia.

Mr Basrewan has distinguished himself in service to Indonesia as Special Staff to the Minister of Defence and has carried out various assignments for the Indonesian Government over many years. He was the Special Assistant to the first democratically elected Indonesian President, Abdul Rachman Wahid (Gustur).

He is currently Special Advisor and Special Assistant to Dr Alwi Shihab, the Indonesian President's Envoy to the Middle East.

Jan Castro - Non Executive Director

Mr. Castro is the Managing Director of Pala Investments AG, the exclusive advisor to a US$ 1.0 billion investment company focused on the mining and natural resources sector. As a long-term partner, Pala leverages its extensive mining and natural resources sector experience to provide strategic advice and innovative financing solutions.

Prior to founding Pala in July 2006, Mr. Castro was Senior Vice President of Investments and Corporate Affairs for Mechel OAO, a NYSE-listed company and one of Russia's largest coal companies, where his primary responsibilities covered mergers and acquisitions, non-core asset disposals and investor and public relations. He was also responsible for Mechel's IPO in 2004.

Mr. Castro currently serves on the Boards of Anatolia Minerals Development Ltd, Avoca Resources Limited, Gemcom Software International Inc., Norcast Castings Company Limited and Dumas Contracting Ltd.

Mr. Castro received his J.D. and B.A. from Columbia University.