Coal Fe to acquire S. Kalimantan coal mine
Friday, December 5 2014 - 02:24 AM WIB
ASX-listed Coal Fe Resources Limited said Friday it is in advanced negotiations to acquire a 100 percent interest in a producing coal mine located in South Kalimantan.
The mine currently produces 50,000 metric tons per month, the company said, adding that the coal is low sulphur and is currently exported to a leading Chinese power group.
?The company will look at ways to increase production from its current levels should negotiations be successful,? Coal Fe said.
The company advises that consideration will be in the form of shares in the company. ?Furthermore we anticipate executing a Heads of Agreement (HOA) in the near future, which will be subject to any necessary regulatory and shareholder approvals,? it said, without providing further details.
In October, Coal Fe announced it has acquired a 70 percent stake in PT Tunggal Putra Nusantara, which operates a 100-ha coal concession in Palin, West Sumatra. The company expects to begin drilling at this high-calorie coal project in January or February 2015 with a view to making its maiden shipment in March. It is also currently examining acquiring two surrounding concessions which appear to have similar high grade anthracite coal seams.
Editing by Reiner Simanjuntak