Chapmans takes stake in Indonesian coal mining project

Australian firm Chapmans Limited announced on Monday it has entered into a conditional agreement through its 78% subsidiary Hallmark Minerals to acquire an initial 10% interest in the share capital of an overseas company controlling a start-up coal mining project in Indonesia.

Hallmark Minerals will also be entitled to a royalty payment per tonne of coal mined and sold, the company said without giving detail about the coal mining project.

The initial amount required for this transaction is in the region of A$1 million, while an opportunity is being made available to provide larger capital for expansion of the operations, the company said.(denny)