Company Profile

Churchill Mining PLC (Churchill or the Company) listed on the Alternative Investment Market (AIM) of the London Stock Exchange in April 2005.

Churchill's business plan is to leverage off the rampant growth currently experienced in China and India and in particular its appetite for raw commodities used as feedstock in its burgeoning steel and energy industries.

The execution of this business plan has been instigated with the acquisition of the Sendawar Coal Project in East Kalimantan, Indonesia as well as continued exploration of the South Woodie Woodie manganese project in Western Australia .

More recently, the company has concluded an Exclusivity Agreement with PT Techno Coal Utama in regard to the highly prospective thermal coal project located in the East Kutai Regency of Kalimantan, Indonesia.

Furthermore 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. Churchill is committed to growing shareholder value by become a leading minerals explorer and future miner at a time of accelerating commodities demand.


Recent Minesite article : http://www.churchillmining.com/pdf/2008/23_01_08.pdf


January 2008 Research note : http://www.churchillmining.com/pdf/2008/reserchnote.pdf

Someone is happy with CHL just crossed the 12% level.
http://www.investegate.co.uk/Article.aspx?id=200807040928403298Y

http://www.discussthemarket.com/gkp-chat

Energy demand boosts Indonesian coal mines
Bayan Resources yesterday highlighted the interest investors are taking in Indonesia, the world's largest thermal coal exporter, when it announced plans to raise up to $695m by floating 25 per cent of its shares on the country's stock exchange next month.
With countries including China looking for alternatives to oil, global demand for Indonesia's largely low-grade thermal coal, used mostly in power stations, is surging, helped by the fact that suppliers, including Australia and South Africa, can no longer meet demand.

The price of thermal coal has climbed more than 160 per cent in the last 12 months. Power station coal prices at Australia's Newcastle port, a benchmark for Asia, jumped to a record $172.10 a metric tonne in the week ended June 27.

"Momentum is still very much in favour of coal, ahead of other commodities," says James Bryson of HB Capital Partners in Jakarta.

On the back of the rise in prices and demand Bumi Resources, Indonesia's largest coal miner, has seen its share price climb 922 per cent in the last 18 months.

According to Harry Su of Bahana Securities, Indonesia's big four listed miners now comprise some 15 per cent of the country's stock exchange's $200bn market cap and 20 per cent of its daily turnover.

Analysts said Bayan, a smaller player that produced 4.7m tonnes of coal last year, could draw interest from investors seeking similar returns.

The company has a goal of increasing production to 18m tonnes by 2010.

Dozens of foreign companies have bought stakes in Indonesian mines in the last two years. India's Tata Power, for example, last year paid $1.3bn for stakes in both of Bumi's mines and 10m tonnes of coal. Dozens more companies have started green field projects in the last year.

Indonesia's government is mostly supportive of the expansion.

Simon Sembiring, the director-general at the energy ministry responsible for mining, told the Financial Times it would be "stupid" to reimpose an export tax lifted in 2006 and that there are "no plans to ban or limit exports" provided domestic demand is met.

Indonesia absorbed 52m tonnes - or 24 per cent - of the legally recorded 215m tonnes mined last year.

Demand is expected to remain constant this year and jump to 75m tonnes next year, 90m in 2010 and 220m tonnes in 2025 as new power stations come on stream.

Operators' concerns about domestic prices being much lower than the international market have receded in recent weeks after PLN, the state electricity company, signed contracts to buy coal at $90 a tonne.

Mr Sembiring stresses, however, that foreigners would not be allowed to mine and export at will.

"If we met all the demands from China, India, Japan and Korea, all the coal would be gone in a few years," he says. "It's not just about chasing the money. We have to make sure we still have coal for the next 20 years."

There are, however, very significant impediments to investing securely in Indonesia's coal sector. The last contract of work was signed in 2000 and the world's major players are waiting for a new mining law, which has already been three and a half years in gestation. * Bumi Resources, Indonesia's largest coal miner, increased its takeover offer for Herald Resources, by 1.8 per cent to A$563.5m yesterday to break a stalemate in a six-month battle to control the Australian metals company. The rival Tango consortium, comprising Aneka Tambang, of Indonesia, and Shenzhen Zhongjin Lingnan Nonfemet, of China, said it would meet soon to consider its response. Both bidders hold about 19 per cent of Herald.

Thanks smiler o

9TH JULY, 2008




CHURCHILL MINING PLC

('Churchill' or 'the Company')




DRILLING UPDATE FOR THE EAST KUTAI COAL PROJECT, INDONESIA










Highlights:




Latest drilling and exploration programme defines a coal-bearing sequence up to 16.5 km along strike




Initial 250Mt JORC compliant resource reported previously covers less than 6kms of the potential 16.5km strike length



Further promising indications of coal resource quality with very low sulphur and low ash content




Drilling completed to date covers 3,489 hectares and represents less than 10% of total coal target area




Infill drilling programme at the potential first mine pit has commenced to advance the operation into production stage




Second pit drilling target being identified







Churchill Mining (AIM:CHL) is pleased to announce an update on its ongoing drilling programme at the East Kutai Coal Project in Indonesia.




The drilling so far has defined a coal-bearing sequence of approximately 11.5 kilometres along strike from the north-northwest to the south-southeast of the property covering approximately 3,489 hectares of the first target block (RTM), concession area, which represents the area of less than 10% of the four main coal target tenements.




A further 5 kilometres of strike potential of the present coal seams are indicated by the geological mapping and will be tested before the concession boundary is reached. Additional outcrops have been mapped within the RTP concession area to the south of the RTM concession area.




Ongoing drilling to the south of RTM, continues to outline areas of thick coal seams with recent individual intercepts of up to 25m with additional coal outcrops in a new promising area with the potential to host Churchill's second mine pit . A number of previous holes in the same area have intercepted this seam, with coal intercepts ranging between 18-21m.




Mapping to date has successfully located 304 coal outcrops. Depending upon their location in the structure, the coal seams range in dip from a relatively flat 2 to 10 degrees. The area chosen for initial JORC compliant drilling is defined by coal seams dipping up to a gentle 10 degrees and generally striking north-northwest to south-southeast from the western areas of the RP block extending southwards for 16.5 kilometres through the RTM concession and into the RTP concession (June 08 Drilling Update Map - http://www.rns-pdf.londonstockexchange.com/rns/6276Y_-2008-7-8.pdf). However, the initial 250 Mt JORC coal resource centres only on less than 6 kms along strike.




A major regional anticline, trending north-northwest and located immediately east of the current exploration area, is the main structural element in the area and the coal-bearing sediments are located on the western flank of this anticline formed within a gentle syncline structure that is occasionally warped.




The coal in the area is described as sub-bituminous with a very low sulphur content (<0.20%) and ash generally less than 5%. This type of coal is ideally suited to the new generation of power stations being built in rapidly developing economies such as India and China..




The coal that Churchill is expected to produce is now also finding strong demand in other markets, including Europe, where the low sulphur coals are being sought after for its lower environmental impact, suggesting growing demand for this type of coal in the future.




Drilling to date has totaled 12,970m, comprising 5,234m of open hole drilling and 7,735m of coring in 87 drill holes. All drill holes are drilled vertical and depths range between 24m-164m.




At present state, drilling remains reasonably wide-spaced at between 400-500m in most areas, with infill drilling starting in the first mine pit target.




Infill drilling is also being conducted in areas where the company is expanding the measured resource category by additional topographic surveys and selected infill drilling programme.




The company currently has three drill rigs on site with a fourth rig to be shortly deployed to increase the rate of the current exploration programme. The drill holes are geophysically logged at completion of the drilling to ensure the intercepts of coal are of acceptable recovery for the inclusion in the resource model. Analyses of the coal are completed at the Intertek Laboratory in Samarinda, an internationally accredited laboratory.




Churchill's Managing Director, Paul G Mazak, commented:




'The latest round of drilling has added to the potential of the coal deposits within the East Kutai Coal Project concession areas. The discovery of a coal seam of up to 25 metres in thickness stretching over 11.5 kilometres along strike, demonstrates the scale of the coal deposits within the concession area. There is a further resource upside of up to 6 kilometres strike length to drill within the RTM tenement and we are only just about to commence detailed drilling on the newly acquired western blocks.'




Churchill's EKCP retains SMG Consultants to model and analyse drilling and exploration data and further resource updates are expected during Q3/08.

Good bit of news smiler o,, its nice of the company to give us regular updates

Yes and in such a torid market !!

Also

July 9 2008



Churchill Mining says coal-bearing sequence up to 16.5 km defined at East Kutai
LONDON (Thomson Financial) - Churchill Mining Plc. said its ongoing drilling programme at the East Kutai Coal Project in Indonesia has defined a coal-bearing

sequence of up to 16.5 kilometres along strike.

The company said a coal-bearing sequence of about 11.5 kilometres along strike from the north-northwest to the south-southeast of the property covers around 3,489 hectares of the first target block (RTM), concession area, which represents the area of less than 10 percent of the four main coal target tenements.

A further 5 kilometres of strike potential of the present coal seams are indicated by the geological mapping and will be tested before the concession boundary is reached, it added.

Churchill Mining said it currently has three drill rigs on site with a fourth rig to be shortly deployed to increase the rate of the current exploration programme.

TFN.newsdesk@thomson.com tsm/slm

The way the company keeps moving forward with the drilling etc makes me think they will have no trouble selling the coal and may even to get an agreement before the start of production

Am looking at 1 or 2 years before we begin to feel the full benefit of this share

of Interest:

COAL NEWS: LATEST HEADLINES
12 July 2008 01:35 PM London Time




Indonesia May Set Domestic Coal Supply Obligations (Update1)
July 11 (Bloomberg) -- Indonesia, the world's biggest exporter of thermal coal, may enact a rule later this year requiring mining companies to set aside part of their output for domestic power plants, Vice President Jusuf Kalla said.
``We don't want to have blackouts, and on the other hand, we export coal,'' Kalla said in an interview in Jakarta. ``We shall be improving domestic obligations'' of coal producers.

The nation, which generates almost half of its electricity from coal, will need an additional 32 million metric tons of the fuel annually by 2010, when 41 percent of new capacity comes on- stream. Fuel consumption may rise further as more generators are added, Kalla said yesterday.

``We're not saying there will be a limit on exports, but we have to secure domestic supply,'' Jeffrey Mulyono, chairman of the Indonesian Coal Mining Association, said by telephone. ``We have no other choice but to have a regulation.''

The government may also seek royalties from mining companies in kind, and sell some of the fuel to state utility PT Perusahaan Listrik Negara below market prices, Simon Sembiring, director general of coal and geothermal resources at the Ministry of Energy, said in a separate interview. He declined to say if exports would be affected.

Indonesia will enforce a provision in the mining contracts of the country's biggest producers, including the units of PT Bumi Resources and PT Adaro Energy, forbidding them from charging domestic customers more than their lowest export price, Sembiring said on June 28.

Power Outages

Power outages are frequent in Java, the world's most populous island, because of a lack of funds to build plants and upgrade the nation's aging network to keep pace with demand. The government will require some factories to shift 10 percent of their operations to the weekend, when there's spare generation capacity, Kalla told reporters today.

Factories in Java and Bali would need to start weekend operations from July 21, said Industry Minister Fahmi Idris. Companies that don't comply will have their power supply cut temporarily, he told reporters.

The rule may be eased after December 2009, after some units of the new coal-fired plants become operational, said Fahmi Mochtar, president director of the utility.

The government ordered Listrik Negara two years ago to boost generation capacity by 10,000 megawatts to about 34,000 megawatts by 2010. Next year, the government will start construction of another 10,000 megawatts of capacity, a third of which will use coal.

Coal Production

``The rule that the energy ministry is preparing may also say in which months all sectors must submit their coal requirement,'' Sembiring said yesterday. `We have to know first the domestic demand. There are many kinds of coal, so we must know this first, and then we try to secure supply.''

The Indonesian Coal Mining Association forecasts production may increase 9 percent to 235 million tons in 2008. Mining companies may export 180 million tons this year to benefit from record global prices, according to the association said.

Thermal-coal prices at Australia's Newcastle port, a benchmark for Asia, rose 13 percent to an all-time high for a sixth week. Prices climbed to $194.79 a ton in the week ended July 4, according to the globalCOAL NEWC Index.

Record overseas prices led local producer PT Tambang Batubara Bukit Asam to increase the price it charges Listrik Negara, its biggest customer, three times this year. The current price is 90 percent higher than in 2007, Bukit Asam said.

Bumi Resources, Indonesia's biggest coal producer, fell 2.2 percent to close at 6,650 rupiah, while Bukit Asam dropped 1 percent to 14,600 rupiah.

source: Bloomberg 11 July 2008

Smiler,

CHL already have an off take agreement to supply around 10% of production to a local power station, which ,may be increased by the Indonesians with CHL's blessing, as the plant is local to the proposed mine, and therefore a saving on transport costs.

I believe up to 15% of production will go to the power plant.

Looks like coal is back in vogue?
http://www.bloomberg.com/apps/news?pid=20601087&sid=aF7J5DuEkRTU&refer=home
WTN up $1 in Canadian.
cyril

News! 33 metre seam discovered!

Click HERE

A nice tick up late in the day, with news due anyday, perhaps a leak?
cyril

">

RELEASE SCHEDULE OF JORC UPDATE

Churchill Mining (AIM:CHL) wishes to advise of a delay to the release of the next JORC resource update from the Company that was due this week.

The delay is due to the heavy workload of the independent coal experts preparing the report. The resource update is now expected to be released by the end of next week and will be followed by an update regarding the Feasibility Study Programme.

Seems positive mentioning a Feasablity study?

First Glance Update Post Analysts’ Visit Price target: 350p

Oil & Gas 8 May 2012

Full Value Dependent on Kurdistan's access to Export Revenues

There is little doubt that GKP's Shaikan is a world class asset, which we believe
will provide further upgrades to the Company's net reserves, as will the other
discoveries such as Sheik Ali that have excellent potential. Add to this the fact
that security fears have been overdone, and that the region is largely trouble
free, the outstanding issues relate to access to exports, or more specifically,
export revenues. We believe that the risks are limited to timing, and that our
target price of 350p (upgraded following this visit) is an adequate reflection
of these risks. Consequently, we are reiterating our BUY recommendation.
• Reserves upgrades will be the short-term catalyst: Recent well tests have resulted in
a greater understanding of the Shaikan asset. Firstly, the recent news from Shaikan-6,
which was designed to test the how far Shaikan extends to the south, failed to intersect
the oil water contact in the main Jurassic horizons. Management believes that the field
extends for up to 5km further downdip, which will substantially increase reserves.
Second, following flow tests and pressure studies, there is a belief that the Jurassic
horizons are contiguous with that observed in the Kand-1 well 40km to the south, which
was found to be water wet with excellent pressure support, providing for a natural water
drive mechanism; a revised CPR will be released in June or July.
• Production ramp-up will be achieved; it’s all about the timing: GKP is currently
producing ~6m bpd from its current facilities, which is sold domestically for $50/bbl. The
commissioning of EWT-1 will step up production to 20m bpd by Q3’12, while a further
upgrade to 60m bpd could be achieved by 2Q’13 via the commissioning of EWT-2
(1Q’12), and EWT-3 (2Q’12); trucking (the current field export method) can cope with up
to 70m bpd as ably demonstrated by Genel on Tak-Tak. We believe that the
management will be able to achieve these plans, with influences external to the
Company the only barrier to delivering on this timing. However, given our observations,
the support shown by all levels in Kursistan for this development, from the
Governmental to local, we believe that management's timeline is achievable.
• Operational team fit for purpose: What this trip highlighted is the distance that the
Company has travelled in a relatively short time. With a growing “in-country” operations
team, the focus is still very much on cost containment and the staged development
approach maximises the cash flow from operations while counter balancing it with
appropriate risk management. In this respect, the Company continues to impress, and
this ethos is reflected at all levels, which becomes apparent with the close inspection
that this visit has afforded.
• Full value to be unlocked by Kurdistan's Access to its Export Revenues: Currently,
Kurdistan and Baghdad are locked in a battle for Kuristan's share of the export
revenues. Until such times as Kurdistan achieves access to the export revenues accruing
to it from its production, GKP's production will be limited to revenues generated by
sales into the domestic market. We estimate that the domestic market amounts to
between 175 - 200m bpd, and would not support the full development scenarios of all
of the fields currently discovered and appraised. Consequently, the Company will not
derive the full value of its assets until such times as there is an effective route to market.
• A Target Price of 350p a Fair Reflection of the Risks: Following this visit, we are have
adjusted our target price to 350p, which we believe is a better reflection of the risks
associated with the portfolio. Further upgrades cannot be ruled out, and as a result, we
are reiterating our BUY recommendation. We have condensed a lot of information into
this note, but we will be providing a more in-depth note on GKP, incorporating all of the
thinking behind today's update as well as following the release of the Company's CPR.
cyril

HUGE resource increase announced today!

CLICK HERE

Great news and the SP is responding.
cyril

Evening Standard, London,


AIM-listed Churchill Mining added 7 1/2p to 66 1/2p after it said it had discovered three times as much coal at the East Kutai site in Indonesia than it had estimated. It thinks it can dig out 1.4 billion tonnes, compared to the 500 million previously suggested, and hopes to start production by the end of 2009.

guardian.co.uk

On Aim, Churchill Mining climbed 7.5p to 66.5p on news that its East Kutai Coal project in Indonesia had reached 1.4bn tonnes of thermal coal, well ahead of its 500m target for 2008.

Blue Oar analyst Alison Stent said: "This is incredible news for Churchill. The 1.4bn tonne resource has been defined from drilling over only 20% of the total target area suggesting substantial further upside."

Times Online

Tiddler to watch

Shares in Churchill Mining, the AIM-listed coalminer, soared 7p, or nearly 13 per cent, to 66p after the group announced a huge resource upgrade at its East Kutai coal project in Indonesia to 1.4 billion tonnes, from 20 per cent of its target area. The company has the largest resource figure of all the AIM coal stocks

Also tipped in the Telegraph and Express, so could see some more blue, come monday?
cyril

From Blue Oar,seem's to have helped the SP?


Mining: Churchill Mining (CHL.L) ; 59p CORPORATE
1.4bn tonnes JORC compliant coal resource at East Kutai
Churchill Mining has today released an updated JORC compliant resource
statement for their 75% owned East Kutai coal project of 1.4bn tonnes (up
from 250Mt previously)
The 1.4bn tonne resource substantially exceeds the companys year end
target of 500Mt, and with drilling complete on only 20% of the total target
area there is still significant upside potential from here
440Mt fall into the measured and indicated categories, suggesting that the
company may beat its year end minimum reserve target of 150Mt by a
substantial margin
The company is targeting first production by the end of 2009 with a
development decision in early 2009 following completion of the current
feasibility study
cyril

As jimmy cricket sadi, "and theirs more"?

Blue Oar view: This is incredible news for Churchill. The 1.4bn tonne resource has
been defined from drilling over only 20% of the total target area suggesting
substantial further upside, and with 440Mt in the measured and indicated categories
we believe that Churchill is well placed to significantly exceed their reserve target of
150Mt by year end. If we assume that the company is able to define a 300Mt reserve
by year end, this would suggest a value per Churchill share of 180p-360p based on
$1-2 per tonne of resource in ground

And with more to come?
cyril

You never know cyril ; )

This won't help in the short term?


BEIJING (Reuters) - Coal is piling up in China's top shipping harbor for the fuel, the official Xinhua agency said, as manufacturing weakness and slackening power demand undermine a market that was badly overstretched this summer.

Coal supplies in the northern port had reached 8.44 million tonnes by September 16, at least 3 million tonnes above normal levels, the report published late on Saturday said, citing an official there who declined to be named.

Qinhuangdao only has storage capacity for 10 million tonnes, but for two weeks a surplus has mounted at a rate of around 100,000 tonnes per day and other ports face similar problems.

In Guangzhou, there are 2.2 million tonnes of stored coal, compared with just 1.7 million in late June, Xinhua said.

Trading volume there is also down since July to just around 3 million tonnes, from 4 million tonnes a month in early summer.

Power plants now have enough fuel to cover an average 15 days of demand, following a summer when many were forced to close for lack of supplies or because soaring costs meant they could not make a profit by generating, Xinhua quoted Xie Juchen, head of the fuel section at the China Electricity Council, saying.

This caused crippling summer shortages that were the worst since 2004, with demand outstripping supply by more than 40 gigawatts.

But China's manufacturing sector contracted in July and August, contributing to a nationwide deceleration in coal and power demand, particularly in the south where rising labor costs and an appreciating currency are hurting exporters.

Around Beijing, factory closures to clear the air during the Olympics in August also dented demand for coal and power.

Analysts do not expect a repeat of the most severe coal shortages, though power supplies may still be tight this winter, as the government encourages small mines closed over safety concerns to reopen and some new rail routes come into action.
cyril