Coal Fe further extends Jambi coal project acquisition deadline

Perth-based mining firm Coal Fe Resources Limited reported on Friday that it was in talks to further extend deadline of acquisition of 60 percent shares in PT.Nusantara Thermal Coal (NTC), which had expired on Dec 21, 2007.

The company said that geological due diligence undertaken by a consultant showed JORC-compliant recoverable reserves of 24 million tonnes.

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.

Coal Fe will pay 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.

Elsewhere, the company also reported not to proceed with the Kilisuci coal project in Bengkulu due to high cost to develop the project.(alex)