Borneo Resource convinces shareholders on its business model
Wednesday, January 25 2012 - 02:27 AM WIB
Borneo Resource Investments Ltd, a newly US publicly-traded holding company for investment platform comprising thermal coal concessions has issued a letter convincing its shareholders of the business model as project generator and coal trader of thermal coal, mainly in East Kalimantan.
The company said that it would seek to acquire thermal coal mining rights in East Kalimantan, the province which the company dubbed as the highly-stable mining jurisdiction.
?The company has interests in two thermal coal exploration projects in East Kalimantan province with an estimated resource potential of 12-14 million tonnes, pending confirmation by geological studies,? the letter said.
The first is an 80 percent interest in PT Chaya Meratus Primecoal ("Meratus"), an Indonesian company holding exclusive exploration and development rights for up to 6,000 hectares in the Tanjung Area Basin of south east Kalimantan.
The second is an exploration and production license covering 1,300 hectares in the East Kalimantan province through an agreement with the concession holder, PT Integra Prime Coal.
?The company also has an extensive pipeline of additional projects under review for potential licensing or acquisition,? the company said.
The company said that it would add value through the grassroots exploration and target refinement and then seek option or joint venture partners through to production.
It said that to add to cash flow and reduce the need for dilutive financings to fund its activities, Borneo engaged actively in coal trading.
?As a relatively new publicly traded company, we are sensitive to the fact that currently very little information is available in the public domain regarding our activities." Borneo Chairman and CEO, Nils Ollquist said.
"After our merger and acquisitions, we wanted to update our existing shareholders, and also provide an overview of our company for both retail and institutional investors taking a closer look at Borneo ."
The company argued that it had developed strong ties with local business leaders in East Kalimantan by naming Carlo Muaia, an Indonesian national who was born in East Kalimantan who would be responsible for the company's resource and concession acquisition strategy.
The company also told shareholders of coal production costs in Indonesia range between US$40 and $50 per ton which was the lowest in the world. ?The management continues to compile a portfolio of high-quality thermal coal concessions. Our goal of becoming one of the most significant thermal coal concession holders in East Kalimantan is well on its way to being realized,? the letter said.
The company launched website www.borneore.com as tool to increase shareholder communication and interaction.
Editing by Adianto P. Simamora