Barata Energy, SPC sign coal mining JV

By Ruli Setiawan

ASX-listed Jatenergy Limited announced that its fully-owned Indonesian subsidiary, PT Barata Energy, has signed an exclusive, non-binding memorandum of understanding (MOU) with PT Saijaan Prima Coal (SPC) for the establishment of a coal mining joint venture.

The MOU is effective for three months, during which time Jatenergy will conduct economic, geological and legal due diligence on the project.

SPC holds a production IUP over a 183 hectare property in South Kalimantan, with established coal mining operations and good access to a local port facility.

The company has paid a deposit to SPC of Rp 1.5 billion (about USD 156,000), which is fully refundable should Jatenergy decide not to proceed with the venture.

If Jatenergy proceeds with the proposed joint venture, , together with its existing Jongkang I and Jongkang II mines it will increase to three the number of active Indonesian coal mining operations of the company.

Editing by Adianto P. Simamora