Cokal completes acquisition of SNR
Thursday, August 2 2012 - 01:00 AM WIB
Australia-listed metallurgical coal producer Cokal reported that it has completed an acquisition of 75.2 percent of PT Silangkop Nusa Raya (SNR) which has three exploration licenses in West Kalimantan.
The acquisition of a 13,000 hectare concession was made after completion of a technical Due Diligence, which involved a Cokal geological team conducting a preliminary surface mapping exercise,.
The company?s quarterly report said that the local Indonesian partners will hold the balance of the equity in PT Silangkop Nusa Raya.
?While recent exploratory work for metallurgical coal in the area was limited, surface samples of coal from surrounding areas had shown good coking coal properties and I am excited by the possibility of opening up a new area? Cokal?s Executive Chairman, Peter Lynch, said.
The proposed acquisition has received Indonesian regulatory approval and SNR has been converted to a foreign investment (PMA) company. Under Indonesian law a PMA company is allowed to have up to 100 percent foreign ownership.
It said that in addition to the above projects, Cokal remains active in evaluating other opportunities in Kalimantan.
Editing by Adianto P. Simamora