Churchill soars after coal project study

23rd Sep 2010 08:37

Shares in Churchill Mining roared ahead after the coal miner said a study at its East Kutai project in Indonesia 'confirms the technical and economic feasibility of the project and demonstrates that it is a world-class thermal coal deposit .'An investment evaluation of the project indicates that it has a net present value of $1.8bn, according to Churchill, which adds that the pre-tax net cash flow should be in excess of $500m (£319m) in the first 20 years of production.Churchill says the project is well positioned to feed growing demand for energy in India and China.'The completion of the East Kutai Coal Project Feasibility Study is a significant milestone for Churchill,' said managing director Paul Mazak.He went on: 'We look forward to moving swiftly into the next stage in the ongoing strategic process and bringing this large scale project into development.'