Coal Fe: Q2 sales volume from Abadi coal project down 18%
Friday, August 1 2014 - 01:31 AM WIB
ASX-listed Coal Fe Resources Limited said on Monday that coal sales volume from its joint venture project in East Kalimantan in the second quarter of this year declined by 18 percent to 61,209 metric tons from 74,558 tons in the same period of last year amid the lingering weak global coal market.
?As provided in the Joint Mine Management Agreement between the company and PT. Toba Jaya, at present coal prices these coal sales translate into a royalty of US$1.00 per metric ton for the company.
Coal Fe and Indonesian firm PT Toba Jaya entered in 2009 a joint venture and mine management agreement, under which Coal Fe will receive royalty worth US$1 per ton of coal sold.
The PT Pancaran Surya Abadi Project (Abadi Coal Project) is located in the district of Muara Badak and Anggana, Regency of Kutai Kartanegara, in the Province of East Kalimantan.
Elsewhere, Coal Fe reiterated its plan to acquire 90 percent equity interest in PT. Mineral Sukses Makmur (MSM), a producing iron ore concession in Solok, West Sumatra; and 70 percent equity interest in PT. Tunggal Putra Nusantara (PTN), a high calorie anthracite coal concession in Palin, West Sumatra.
As reported by this portal on June 24, Coal Fe had revised downwards the value of the two mines.
The firm earlier estimated the value of 90 percent of MSM at US$6.5 million plus $5 per metric ton in royalty. The firm has now revised the value of the stake to $2.5 million plus $5/ton in royalty.
Earlier, the firm estimated the value of 70 percent stake in TPN at $250,000 plus $5/ton in royalty. The firm has revised the value of the stake to $150,000 plus $5/ton in royalty.
Editing by Reiner Simanjuntak