Borneo Resource commences production
Friday, June 29 2012 - 12:46 AM WIB
US publicly-traded holding company for investment platform, Borneo Resource Investments Ltd. said that it had commenced operations on surface coal mining from its PT Integra Prima Coal concession in Kutai Kartanegara, East Kalimantan which has estimated reserves of 8 million tons of high thermal coal.
The Company has accumulated an initial quantity of 4,000 tons and is currently negotiating a one year supply contract, with an India-based purchaser, to provide regular monthly shipments totaling 50,000 tons.
"We believe that our concession portfolio contains some of the most attractive reserves of high-quality thermal coal in Indonesia. It has always been our intention to develop a profitable coal trading business to be operated in parallel with the building of our coal assets by acquisition." Nils Ollquist, Chairman and CEO of Borneo Resource Investments said in the press statement posted in PRNewswire.
It said that Integra concession has significant quantities of surface and "outcrop" coal, and that it will be able to access the coal with relatively low infrastructure and production costs.
"Independent analysis of coal samples collected from the Integra concession showed extremely high thermal values of up to 7,400 BTU, in addition to relatively low ash and sulphur content. We believe that the project can create significant positive cash flow immediately, as thermal coal of this calorific output attracts a premium price of well over $100 per ton." said Ollquist.
Editing by Adianto P. Simamora