Australian firm signs coal MoU with CV Rahma

By Nellawati

ASX-listed Western Mining Network Limited (WMN) said on Tuesday it has entered into a Memorandum of Understanding (MoU) whereby WMN has the exclusive right to explore and if warranted, mine a thermal coal tenement in South Kalimantan which is 100 percent owned by CV Rahma (RMA).

WMN has signed a MoU to conduct due diligence and detailed exploration for a period of 90 days on RMA?s Production License: IUP (Izin Usaha Pertambangan Production/Mining Production License) No. 545/04/IUP OP/D.PE/2010 issued by the Regent of Kotabaru, with total area of 199 hectares, for period of 5 years, ending 10 February 2015.

?From our initial site visit, RMA?s coal sampling test resulted in coal specification as follows: CV (adb) 6,639 Kcal/kg, Total Moisture 6.9 percent, Inherent Moisture 4.6 percent, Sulphur 0.88 percent, Ash 10.2 percent, Fixed Carbon 46.8 percent, Volatile Matter 38.4 percent,? the company said in a statement.

RMA previously conducted trial production, but stopped the program and decided to pursue a more detail exploration program with WMN. Should the company and RMA be satisfied with the results from the detailed exploration, both WMN and RMA shall execute The Joint Production and Coal Sale Agreement, according to the firm.

WMN?s Executive Chairman Christopher J. Clower said, ?We are excited to have secured another thermal coal tenement with potential for production?.

Editing by Johannes Simbolon