Aussie firm teams up with Tanri Abeng to set coal business

ASX-listed firm Killara Resources Limited announced on Wednesday it has executed a Binding HoA with Indonesian firm PT Tavesco Resources (TR) to establish a JV company PT Tavesco Killara Energi (TKE) to develop coal business in Indonesia.

TR is a subsidiary of PT Tason Holdings, which is controlled by prominent buinessman and ex-minister Tanri Abeng and Ridwan Zachrie, former Managing Director of Indonesian investment firm Recapital Advisors.

According to Killara, Tason has access to a number of coal concession throughout East and South Kalimantan which can potentially be included in TKE. ?It is anticipated that the desktop studies of the shortlisted concession be completed in early July 2011 with selected concessions to then be subject to confirmatory site inspections prior to the commencement of detailed due diligence on concessions as required,? the company said.

TKE is to be equally owned by TR and Killara, but upon a Decision to Mine on a particular project, TR will have option to give up 30 percent of its shares to Killara in return for full project funding by Killara. (alex)