Aquarian approached by potential coal offtaker

Toronto-based exploration firm Aquarian Gold Corp. said on Thursday it had been contacted by an international consortium for possibility to supply coal from its Riau coal property in Central Sumatra to a proposed power plant project which will be built adjacent to the property.

According to the company, the consortium, whose name is undisclosed, is in the process of developing a two stage, 4 x 150 MW coal driven power plant directly adjacent to the property. "The consortium has announced that a Power Purchase Agreement by the State Electricity Company is contracted for a period of 30 years with the option of 10 years extension. Their total requirement of coal supply to the power plant for the period of 40 years would be approximately 200 million metric tonnes or 5 MT per year," the company said.

The company said it would spend US$2 million in 2008 exploration program with the aim of having defined its coal reserves, currently estimated at a potential for 300 million metric tonnes.(alex)