Australian firm hires contractor to start S. Kalimantan coal mine

Australian pharmaceutical firm trying to turn into miner EQiTX Limited (EQX) said on Tuesday that it had agreed on terms with mining contractor PT GSB Resources (GSB) to conduct mining and other services at the mine operated by the latter's subsidiary, PT Alam Duta Kalimantan, in Kintap, South Kalimantan.

Other services include removing overburden and hauling the coal stockpile to the port, it said.

?It is anticipated it will be a four year contract, and an initial payment of US$1.126 million has been paid to GSB to commence mobilisation of its equipment and work force to the mine site in Kintap, and to construct the camp, workshop and office complexes,? the company said.

Earlier, EQX said it would start coal production at a Duta Alam mine in third quarter of 2008. (denny)