Altura plans to divest interests in Delta, Tabalong coal mines
Thursday, September 15 2016 - 01:17 PM WIB
ASX-listed Altura Mining Limited said it is planning to divest its interests in Delta and Tabalong coal mines located in Indonesia?s Kalimantan Island amid the lingering weak coal market condition.
The divestment plan was disclosed in its financial report for the year ending June 30 released on Thursday.
The company said it is pursuing a number of options including the possible sale of the coal assets or an asset integration with other similar operations.
The Delta coal mine is located in East Kalimantan. Altura owns a one-third stake in this business. 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