AKD seeks $2.2m for Indon pig iron project

West Perth-based AKD Ltd has issued a prospectus seeking $2.2 million to fund a drilling program at the Yogyakarta Ironsands Project and commence feasibility on a 300,000 tonne pa pig iron plant in central Java.

The drilling is aimed to bring the project to JORC compliant status.

Completing both tasks would earn AKD a 70 per cent stake in the development under an agreement with existing owners PT Jogja Magasa Mining and Nusantara Energy Ltd.

AKD announced earlier this month that global metals group Outokumpu and Krakatau Steel of Indonesia had signed an MOU on the project.

The company said Outokumpu's technology division has been commissioned to carry out the feasibility study while Krakatau "intends to be an offtake partner" for the pig iron production.

This is from AKD's website:

The Ironsands deposit was initially drilled by PT Aneka Tambang in the 1970's and early 1980's.

On the basis of this drilling and subsequent test-work, studies completed by Lurgi and Davey McKee in 1985 reported an ironsand deposit containing titani-ferrous magnetite over a 22km by 1.5 km wide strip of coastal plain.