Dayen?s Indonesian coal mining deal in limbo

Singapore Exchange-listed firm Dayen Environmental Limited announced on Wednesday that Indonesian mining firm PT.Modal Investasi Mineral (MIM) was unable to perform its obligation as stated in the Mining Right Agreement (MRA) between the two companies.

?The Board would like to announce that PT ATPK Resources TBk (ATPK) has informed the Company that its subsidiary, MIM, is unable to perform its obligations under the MRA, and that ATPK is committed to entering into a new contractual arrangement with the Company,? Dayen said in a report to the Singapore Exchange.

Dayen did not disclose more detail.

Dayen signed an MRA in late 2007 witn MIM for the for the right to mine, remove, transport and process 5.0 million tonnes of coal from MIM?s subsidiary mine mine in Kalimantan. Dayen then signed an MoU to transfer the right to to China (Fujian) Foreign Trade Centre (Holdings) for a fee.

?On the advice of the Company?s lawyers, the Company will not hesitate to take all necessary legal actions to enforce the terms of the MRA and the MOU. The Company will promptly make further announcements as and when there are developments and updates on the matter,? it said.(alex)