Pan Asia to spend $US180m on Indo coal mine

Pan Asia Corporation has released a study confirming the viability of its Transcoal Underground Coal Mine (TCM) in Indonesia, with the project set to cost around $US180 million to develop.

Perth-based Pan Asia said a base case feasibility study on the TCM project, released today, showed the project was technically and financially viable, based on production of around 18 million tonnes over a 15 year period.

The project is located in Indonesia's South Kilamentan, with an initial JORC-compliant coal resource of 128 million tonnes.

Pan Asia said the study indicated the mine and associated infrastructure would cost $US179 million to develop.

Exploration work to the north of the main resource at TCM could also significantly extend the life of the mine, if successful, Pan Asia said.

“This is a major milestone for the company with our flagship project receiving such a positive independent review,” Pan Asia chief executive Alan Hopkins said.

The study was carried out by PT Kopex Mining Contractors.

At 12:00PM, WST, Pan Asia stocks had gained 10.3 per cent, trading at 16 cents.