Federal expands into Indonesian coal mining business

Singapore energy services provider Federal International (2000) Ltd announced on Thursday that it has ventured into the coal mining business in Indonesia through its 51 percent-owned indirect subsidiary Alton International Resources Pte Ltd (AIR).

The balance shareholding of AIR is owned by two individuals ? Lim Lee Leng and Gary Ng who each has a 24.5% stake in the company.

Under Indonesian law, foreign companies can only participate as mine operators. Through its network in Indonesia, AIR is currently in discussion with owners of the local mine concessions for at least three mines which are in the production stage. These agreements will enable AIR to be the mine operators and exclusive marketer of the end products, the company said.

?Currently we are in negotiations with a few other mines which are likely to commence operations in the second quarter of FY2008. We expect to achieve an annual turnover of S$15 million from the coal mining activities.? K K Koh, Executive Chairman and CEO of Federal said without giving more detail.(alex)