Dayen sells E. Kalimantan coal mining right for $25m

Singapore firm Dayen Environmental announced on Monday it had entered into an MoU with China (Fujian) Foreign Trade Centre Holdings (FTC) to transfer its coal mining right in PT Modal Investasi Mineral (MIM) for US$25 million.

Payment will be made over 6 installments starting from 30 Sep 2008 to 15 Dec 2013, the company said.

Dayen has entered into a mining right agreement with MIM, a 96.77 percent subsidiary of Indonesian Stock Exchange-listed mining firm ATPK Resources in December 2007.

The agreement is for the exploitation and marketing of 5.0 million metric tonnes (MT) of coal from a MIM?s Damanka mine located in Sangatta, East Kalimantan.

Dayen is given the right to mine, remove, transport, process and market up to 5.0 million of coal from Damanka over seven years with a fixed royalty payment of US$5 per MT.

The company said FTC will engage Dayen to assist in the operations of the mine.

FTC is a China?s multi-function foreign trade enterprise subordinated to the Ministry of Foreign Trade and Economic Cooperation. It is engaged in the export and import of various commodities and various economic activities. (alex)