EGCO quits S. Kalimantan coal joint venture

EGCO Mining Co, a subsidiary of Thailand?s leading independent power producer Electricity Generating Plc. Ltd (EGCO, is pulling out from coal exploration joint venture with local firm in South Kalimantan, according to an official from ministry of energy and mineral resources.

Wimpi S. Tjetjep, director general for geology and mineral resources at the ministry told Petromindo.com Tuesday that the reason for EGCO Mining to give up its 75 percent stake at PT Borneo Indobara was because the project was not viable as thus far, only 6 million tons coal reserve of high calorific value were found.

The rest of the reserve was low-priced sub-bituminous coal, said Wimpy

EGCO is also earlier reported to offer its in EGCO Mining, but no buyer seemed to be interested, citing poor coal quality as a reason. (godang)