AOM says its Indonesian coal project suspended

ASX-listed Australia Oriental Minerals (AOM) reported on Monday that operations at the Muara Teweh coal concession, Central Kalimantan have been suspended, as a result of sub-economic returns.

The company cited a combination of the weak global economic outlook and the complex geology resulting in lower-than-expected inferred coal resources.

AOM has mining right at the project via its 30%-owned associate company, Asiatic Coal (ACPL).

ACPL has said that the suspension of operations would be reviewed at regular intervals, until conditions improved to the extent that operations may be restarted, it said.(alex)