Altura hopes to complete SGX listing in September despite coal downturn
Tuesday, August 4 2015 - 04:22 AM WIB
ASX-listed Altura Mining Ltd said that the process for a planned listing of Indonesian coal assets on the Singapore Stock Exchange (SGX) is expected to be completed in September or October of this year, while acknowledging that the current downturn in global coal market provides challenges.
As has been previously reported by this portal in January, Altura decided to consolidate all of its Indonesian coal assets into a new separate coal-focused entity, Merida Corporation Pte Ltd, to be listed on the SGX.
?The shareholder group (including Altura) has continued to complete the pre-requisite documentation required for submission to the SGX, and the group believes the process is well on track for completion however some key deliverables remain outstanding,? Altura said in a statement last week.
The company said the key remains the finalization of the technical reports (including revised JORC Reserve and Resource estimates) after peer review and the reliance of these reports for valuation purposes. As previously mentioned in the Delta Coal section, the process is substantially reliant on successful negotiation of contractor rates and reliable production in line with forecast. ?The prevailing coal market conditions have provided challenges and contributed to some revisiting of these technical reports,? Altura said.
The company, however, is optimistic that the listing process will be completed this year. ?The process is targeting completion by September / October 2015,? Altura said.
The assets to be consolidated into single entity comprise:
(a) a 33⅓% interest in the Delta coal mine in East Kalimantan (the Delta Project); and
(b) a 70% interest in three Mining Permits (PT Suryaraya Permata Khatulistiwa, PT Suryaraya Cahaya Cemerlang and PT Suryaraya Pusaka) and a 56% interest in two Mining Licences (PT Kodio Multicom and PT Marangkayu Bara Makarti) that form the Tabalong coal project in South Kalimantan (the Tabalong Coal Project). All five (5) IUPs are granted for Operation Production and Altura is seeking the necessary Forestry Land Use approvals to allow mining to proceed.
As part of the planned listing, funds will be raised in Singapore to fund the development of the Tabalong project through to production, strengthen the balance sheet for the existing Delta mine and progress the exploration programs for both projects.
Whilst Altura will no longer have majority ownership of the Tabalong project, it will however retain a controlling interest by holding two of the five board positions, including the Chairman?s role.
Editing by Reiner Simanjuntak