Gulf Manganese Corporation Limited (ASX: GMC) (“Gulf” or “the Company”) is pleased to announce that the Company’s first 140 tonne shipment of structural steel has arrived from Weltes in Surabaya and is being offloaded at the Tenau Port in Kupang. In addition to the steel, Gulf also took delivery of Prefabricated Site Offices and Workshops.
Fabricated steel from the Weltes engineering facilities in Surabaya is being progressively shipped to Kupang, subject to vessel availability. Weltes have already mobilised a construction team and once their site infrastructure (including site office, workshop and tool store) for this team are established, will commence erection.
Gulf’s Managing Director, Hamish Bohannan, commented: “The arrival of the first shipment of structural steel from Surabaya is yet another key step towards realising Gulf’s vision of finalising the construction and commissioning of our first two smelters.“
QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 30 JUNE 2018
Gulf Manganese Corporation Limited (ASX: GMC) (“Gulf” or “the Company”) is pleased to provide shareholders with its Quarterly Activities Report for the period ended 30 June 2018.
Kupang Smelting Hub Project Overview
Gulf is focused on developing a ferromanganese smelting business in West Timor, Indonesia to produce and sell low and medium carbon ferromanganese alloy. The Kupang Smelting Hub facility will contain at least eight furnaces built in stages over five years, targeting the production of a premium quality 78%+ manganese alloy.
At full production, Gulf aims to produce some 155,000 tonnes of premium quality ferromanganese alloy per annum from about 320,000 tonnes of manganese ore predominantly sourced from local miners.
June Quarter Key Milestones
Smelters Shipped to Kupang
During the quarter, the two smelters were shipped from Durban, arriving at Tenau Port, Kupang on July 23, 2018. After clearing customs, the smelters were transported to the Smelting Hub site located at the Bolok Industrial Estate
To mark the arrival of the first two smelters in Kupang, a celebratory ceremony was held in Kupang, attended by representatives of Gulf’s key investment partners, the Indonesian-based diversified investment group PT Jayatama Tekno Sejahtera (“JTS Group”), local stakeholders, esteemed Government representatives and members from Gulf’s Board and Senior Management team.
The arrival of the first two smelters marks a significant milestone for Gulf, with all the smelter components now on site ahead of commissioning in Q4 2018.
Cornerstone Funding Package Completed
In March 2018, Gulf secured a A$15 million (IDR equivalent) funding package through Investment partner, Indonesian-based diversified investment group PT Jayatama Tekno Sejahtera (“PT JTS”) and its related entities.
The package included a A$2 million placement to Eighteen Blue Investments Pty Ltd at 1.5 cents per share with free attaching 0.5c options expiring 21 April 2019, approximately A$6 million in IDR equivalent to be invested by PT JTS’s wholly-owned subsidiary at project level in PT Gulf Mangan Grup (“PT GMG”) for 25.1% equity, and an additional A$7 million standby facility to provide additional flexibility during the construction and commissioning phase.
On May 31, the A$15 million was completed after the Company advised it had received the second funding tranche of approximately A$6 million in IDR equivalent.
The successful completion of this cornerstone investment by PT JTS is key to Gulf’s long term success in Indonesia. PT GMG will no longer be viewed as a “foreign” company but as a local partnership with local ownership and is now well positioned to complete the construction and commissioning of the first two smelters at the Company’s Kupang Smelting Hub in West Timor.
Power Purchase Agreement Signed
On May 7, the Company’s Indonesian subsidiary PT Gulf Mangan Grup (“PT Gulf”) signed a five-year agreement with national power provider PT PLN (Persero) Wilayah NTT (“PT PLN”) for the supply of 20 MVA to the Kupang Smelting Hub Facility site.
Under the contract, PT PLN agreed to provide continuous electricity power of up to 20,000 KVA to the Kupang Smelting Hub site, with a guaranteed voltage of 20,000 volts, by providing Gulf with a separate transformer to other customers on the PT PLN network.
Gulf Manganese Corporation Limited (ASX: GMC) (“Gulf” or “the Company”) is pleased to announce that the Company’s first two smelting furnaces, including the two transformers and associated parts, have arrived safely on site at the Kupang Smelting Facility.
As previously advised, the smelters arrived in Kupang on Monday, July 23, and have now successfully cleared customs before departing Tenau Port for the Kupang Smelting Hub site in the Bolok Industrial estate. The smelter reassembly and installation program is now underway, and commissioning is scheduled to commence in December 2018.
Gulf’s Managing Director, Hamish Bohannan, commented: “The transport of our first two smelters safely to site post clearing customs is a crucial step that has been well executed by the team on the ground. The challenge for us all is to now continue to push forward to ensure the successful and timely delivery of this project and we look forward to celebrating the commissioning of the smelters and first production of ferromanganese alloy with our partners, PT JTS, and all our loyal shareholders in the new year.
First Two Smelting Furnaces Arrive in Kupang
Gulf Manganese Corporation Limited (ASX: GMC) (“Gulf” or “the Company”) is pleased to advise that the Company’s first two smelting furnaces have arrived at Tenau Port in Kupang. The smelters will now undergo a final customs clearance before being transported to the nearby Kupang Smelting Hub Facility site operated by GMC’s subsidiary Company, PT Gulf Mangan Grup (“PT GMG”) by truck commencing Monday 23rd July.
To mark the arrival of the first two smelters in Kupang, a celebratory ceremony was held in Kupang and was attended by representatives of our key investment partners, the Indonesian-based diversified investment group PT Jayatama Tekno Sejahtera (“JTS Group”), including Bapak Fofo Sariaatmadja (President Commissioner PT GMG) and Bapak Chairoel Jul Naro (Commissioner PT GMG). Also in attendance were local stakeholders, esteemed Government representatives and members from Gulf’s Board and Senior Management team (see Figure 2).
The shipping was managed by Durban-based Themba Dry Cargo, with the unloading witnessed by the Senior Gulf Board and Management, key investment partners (including Bapak Fofo Sariaatmadja and Bapak Charoel Jul Naro as well as Tan Hwa Poh and Sam Lee), with XRAM Senior Management coordinating the unloading.
First Two Smelting Furnaces Shipped to Kupang
Gulf Manganese Corporation Limited (ASX: GMC) (“Gulf” or “the Company”) is pleased to advise that the first two smelting furnaces are being shipped from Durban and are expected to arrive in Kupang next month.
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