Australia Oriental reports C. Kalimantan coal project update

The following is an excerpt from Australian firm Australia Oriental Minerals (AOM) on Muara Teweh coal project, taken from quarterly report for period ending 31 March 2010, which published on Thursday.

The Company's interest in the coal mining concession at Muara Teweh in Central Kalimantan is held via its 30% owned associate company, Asiatic Coal Pte Limited (ACPL).

AOM was advised by ACPL that the mobilisation of mining equipment to the Muara Teweh site has been delayed due to Indonesian regulatory matters that ACPL are hopeful of resolving by the next quarter.

During the quarter, ACPL sold approximately 11,000 tonnes of coal from the bulk sampling stockpile at Muara Teweh, generating additional working capital for the operations. ACPL has advised, however, that operating losses are expected for the quarter arising from unforeseen circumstances and the aforementioned regulatory matters.(end of excerpt)