Gulf Manganese Corporation Limited (ASX: GMC) has executed a Memorandum of Understanding (MOU) with Indonesian state-owned power utility PT PLN (Persero) for the provision of up to 20 MVA power supply to tGulf’s Kupang Smelting Hub Facility in West Timor.
The MOU, signed with Gulf’s wholly-owned subsidiary PT Gulf Mangan Grup, covers the supply of power to the Kupang facility and is valid for 12 months from the signing date, which may be extended when required.
Gulf said it is targeting the signing of a Power Purchase Agreement by end of December 2017.
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Gulf’s Managing Director, Hamish Bohannan, said that securing a power supply deal to the Kupang facility further de-risks the project’s near-term development.
“In addition to power, Gulf has also recently secured its initial ore supply from local miners and both of these agreements with key local partners are a testament to the skill and commitment of our in-country staff,” Mr Bohannan said.
Following securing of the final $1.5 million funding commitment which closes out a recent A$12m capital raise, Gulf is now well positioned to execute a number of key operational milestones over the coming months, including the shipment of the two smelting furnaces from South Africa to the Kupang site.”
Mr Bohannan said the vompany’s smelter refurbishment programme in South Africa remains on-track and is expected to be finalised this quarter. Gulf’s in-country team is also actively working towards obtaining the approvals required to allow the commencement of Direct Shipped Ore (DSO) (>49% Mn) sales from Kupang.
Gulf’s strategy is to develop an ASEAN focused manganese alloy business based in Kupang, West Timor.
Targeted production will be a premium quality 78% ferromanganese alloy resulting from the unique qualities of the Indonesian high grade (greater than 50%) low impurity manganese ore.
