Chinese firm eyeing stake at Strike

Australian mining firm Strike Resources Limited said on Monday it had signed a letter of intent with an undisclosed major Chinese mining and trading group to acquire significant stake in the company.

The company also said it has been in discussion in investors in Singapore with a view to list its Berau Coal project in East Kalimantan on the Singapore Stock Exchange as a means of raising capital to develop the project.

Strike?s main asset is the Berau Coal project, which covers an area of 5,000 hectares in Berau regency. The company has completed feasibility study which focused on the development of open cut mining operations with production scaling up to 1.5MTPA to 3MTPA.

The company has also signed HoAs to sell 2.4 million tonnes of coal over a two year period from Berau Coal Project to companies in China?s The China National Building Materials & Equipment Import & Export Corporation and Taiwan?s Formosa Plastics Group . (alex)