Coal Fe extends Jambi coalmine acquisition deadline

Perth-based firm Coal Fe Resources Limited said it has commenced due diligence on acquisition of 60 percent shares of Jambi coal miner PT.Nusantara Thermal Coal (NTC) and expects completion on December 15, 2007, or three months later than the original schedule.

The company has appointed consultants to help it carry out due diligence and scope of work had been extended to address the targeted scale of production once the acquisition is completed.

The company has recently signed agreement with an undisclosed US power firm to jointly acquire NTC. The power firm is also considering entering into an off-take Coal Fe is presently negotiating a first trial shipment of 30,000 Mt per shipment to tye power firm.

NTC is a 3rd generation Coal Contract of Work holder with the right to mine an area of 2,832 hectares for a period of 30 years commencing on 27 March 2006 in Muara Bungo Regency, Jambi Province.

According to the company, total non-JORC resource for the concession is estimated to be at 29.9 million tonnes.

Coal Fe will pay BRN US$35 million in cash and $15 million in shares should the due diligence succeed.

NTC coal has CV range of 5,676 ?6,900Kcal/kg. (alex)