Australian-based Realm Resources is expected to commence mining operations at its Central Katingan Ria thermal coal project following an approval from the Indonesian Ministry of Forestry.
The company secured the permit with the upgrade to its Exploration Forestry Permit to an In-Principle Forestry Operations Permit.
Realm owns a 51% stake in the open-cut Katingan Ria ash coal mine, located in Kalimantan, Indonesia and is forecasting production in 2013.
A drilling program to upgrade the current resource is presently underway at the site, the results of which are expected before December 2012.
Realm chairman Richard Rossiter said, "The In-Principle Licence is the last stage prior to the issuance of the "Borrow and Use of Forest Area Permit" 2 or so called Ijin Pinjam Pakai Kawasan Hutan (IPPKH) which allows the Company to start mining."
The In-Principle License covers a total area of 3,058.25ha, where mining operations are set to begin shortly over the first 1,000ha.