Altura: Courts appoint independent curator to oversee Delta coal mine

By Romel S. Gurky

Petromindo

ASX-listed Altura Mining Ltd said that that an independent curator by the courts to oversee the Delta coal mine in East Kalimantan amid ongoing dispute with mining contractors.

?Altura, as a one-third shareholder of Delta coal, has now been informed that the courts have appointed an independent curator to oversee and manage the mining business, and the company understands that this process is similar to the appointment of a corporate administrator. Currently there is still no resolution as to how the mine will be operated and what will be the outcome of the legal cases,? the company said in an update statement on Thursday.

As has been previously reported, the Detal coal mining operations were suspended pending the outcome of legal cases between Delta Coal and its mining contractors. The case(s) were based on the mining contractors seeking payment for mining services rendered to the coal mine, however Delta Coal has lodged a counter claim for breach of contract pertaining to a sustained period of below contract performance resulting in higher than contracted waste removal costs and lower than contracted coal delivery tons.

Elsewhere, the company said it has also previously stated its intention to divest its interests in both the Delta and Tabalong coal assets, and continues to pursue a number of options for sale of the coal assets with various information being made available to a number of parties under confidentiality deed arrangements.

?The legal and technical due diligence process for the sale of Tabalong continues with parties that have executed confidentiality deeds,? Altura said.

The Delta mine produces a medium energy thermal coal and during the 2015/16 financial year, the mine produced 0.404 million tons (mt) and sold 0.453mt of coal. Production during the year was lower than during the 2014/15 financial year due a depressed coal market, and continuing lower production from contractors during the year.

The Tabalong coal project is a premium grade thermal coal deposit located in South Kalimantan. The project consists of five mining licenses (IUPs), with all five IUPs granted for Operation Production. Altura holds 70 percent of three IUPs and 56 percent of the remaining two.

Editing by Reiner Simanjuntak