Adavale eyeing Sumatra coal mines

Aussie mining firm Adavale Resources Limited said on Tuesday that it is currently undertaking physical due diligence on a potential transaction for the acquisition of two thermal coal assets on the west coast of Sumatra and the east coast of southern Sumatra.

The company said that to ensure the project is properly funded and as part of the proposal, it has reached preliminary agreement with a co-investor to enter into a 60/40 joint venture agreement for the development of the project, on final terms to be agreed.

Total capital expenditure is estimated at US$3m, it said.

The company did not provide further details. (denny)