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Company Information for Churchill Mining Plc
Company stock charts - 6 Month chart
 AIM; CHL
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Company Statement
Churchill Mining PLC is a UK listed exploration Company with coal assets in Indonesia in the East Kutai Thermal Coal Project and the Sendawar Indonesian Coal Bed Methane Project. In addition, Churchill retains a 20% stake and royalty over the South Woodie Woodie manganese project in Australia and a 31.9% shareholding in Spitfire Resources which now controls the project.
The Company is focused on becoming a major Indonesian coal producer. Churchill's business plan is to leverage off the growth currently experienced in China and India and in particular their appetite for coal and energy.
Demand for thermal coal is growing rapidly, driven by Asian energy consumption and export constraints in China, South Africa and Australia. This is further strengthened by local government mandates to substitute oil-fired power stations with coal. Churchill’s assets are situated in a particularly pro coal mining province in Indonesia providing it with a strong shipping advantage to Asian markets.
Churchill raised £10m via an equity issue to fund an aggressive drilling and feasibility studies campaign at the East Kutai Coal Project and has since extended the size of the Project by 200 square kilometres by acquiring a 75% interest in the abutting tenements to the west of EKCP from the Investmine Group of Indonesia. Exploration and resource drilling continue along with scoping and pre-feasibility work.
A JORC Resource Statement defining 1.4Bt of coal resources was announced in September 2008. This comprised of: Measured Resource of 118Mt, Indicated resource of 322Mt and an Inferred resource of 972Mt.
Churchill's management continues to assess further opportunities in Australia and southern Asia to acquire quality projects in line with the Company's business plan. The Company is committed to growing shareholder value by become a leading minerals explorer and future miner at a time of accelerating commodities demand.
Current Operations
East Kutai Thermal Coal Project (Churchill 75%)
In May 2007 Churchill announced a sales agreement had been entered into to purchase a 75% interest in the East Kutai Coal Project from PT Techno Coal Utama. Churchill has now extended the size of the project by 200 square kilometres by acquiring a 75% interest in the abutting tenements to the west of EKCP from the Investmine Group of Indonesia. Exploration and resource drilling continue along with scoping and feasibility work.
In 2008 the Company released an updated JORC Resource Statement defining 1.4 billion tonnes of thermal coal reserves and resources.
Sendawar – CBM
The Sendawar CBM project in Kalimantan, Indonesia, covers more than 800 square kilometres of prospective ground and lies in close proximity to two operating open-cut coal mines. The project is located approximately 50 km from the Mahakam River.
During Churchill’s coal exploration programme, data collected during geophysical and resistivity work, along with data collected from previous oil and gas exploration in the area, indicated that the area was highly prospective for Coal Bed Methane. Churchill (70% of the CBM project) along with its Indonesian partner RMU (30%) were granted Indonesia’s first CBM JEA license in September 2007. The CBM project has the potential to host Gas-in-Place of 5.6 trillion cubic feet. Churchill is currently conducting further studies on the CBM project before starting detailed field work.
South Woodie Woodie
Given the increased prospectivity of South Woodie Woodie and Churchill’s increasing focus on its Indonesian coal and coal bed methane projects, the Company sold 80% of the project to Australian company Spitfire Resources Limited (“Spitfire”).
Spitfire, which listed on the ASX on the 12th December 2007, has the option to purchase the remaining equity in the project but must spend AUD$1.5 million on exploration. Aside from its large shareholding in Spitfire, Churchill also retains a price-indexed mining royalty over the South Woodie Woodie project.
In March 08 Spitfire announced that it had secured the strategic support of the diversified Norwegian-based industrial, trading and metals & alloys group, Tinfos AS (“Tinfos”), as its new major shareholder via a share placement.
Churchill holds a 31.9% stake in Spitfire Resources Ltd.
www.spitfireresources.com
Geographical Spread
Indonesia
Board of Directors and Key Management
| David Quinlivan | Chairman |
| Paul Mazak | Managing Director |
| Faroek Basrewan | Non-Executive Director |
| Jan Castro | Non-Executive Director |
Company AddressSuite 1, 346 Barker Road
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Additional Address/Key ContactAustralian Office: |
Year End30 June |
Nominated BrokersMidas Investment Management Service | Nominated AdvisorsAstaire Securities Plc |
Related News
27/05/09 - Churchill Mining Looks Well Set Up To Bring The East Kutai Coal Project Into Production Within The Next Couple Of Years15/12/08 - Churchill Mining Should Be Producing Coal From East Kutai By The End Of Next Year
13/11/08 - Churchill Mining Explores The River Route For East Kutai’s Initial 3 Million Tonnes Of Thermal Coal Per Year
02/10/08 - Churchill Mining Joins The Billion Tonne Club On East Kutai In Indonesia
08/04/08 - Churchill Mining Makes The Most Of Fabulous Times In The Coal Market
23/01/08 - Churchill Cranks Up Its Indonesian Coal Hunt
Most Recent Statement
15/06/09 - Change of Name of Nominated Adviser29/05/09 - Total Voting Rights
27/05/09 - CHURCHILL COMPLETES CAPITAL-RAISING TO ADVANCE INDONESIAN THERMAL COAL PROJECT
18/05/09 - CHURCHILL DOUBLES RESOURCE TO HIT 3.18 BILLION TONNES
05/05/09 - Spitfire Resources Limited Update
21/04/09 - Potential Supply Agreement