Fish firm acquires S. Kalimantan underground coal concession

Australian firm Sam?s Seafood Holdings Limited announced on Monday it will enter Indonesian coal mining business through acquisition of 100 percent interest in Triumph West Pty Ltd.

Triumph has the rights to 80% of the shares in two Indonesian PMA companies, which owns the mining rights to an underground coal concession near Batulicin in South Kalimantan under mining authorities known as Kuasa Pertambangan (KP).

This concession covers an area previously explored by PT. Arutmin Indonesia and in the near vicinity of three exploitation/production licenses currently being mined by Arutmin, the company said.

The KP, by the name of PT.Roda Niaga, covers an area totaling 6,412 hectares and forms part of a relinquished portion of the PT Arutmin contract of work that lies immediately South-Southwest of the Mereh block in the Batulicin area of South Kalimantan.

Based on previous exploration results, Triumph considers that the potential tonnage of coal in the underground seams lying between the Ata and Mereh deposits is significant. However, insufficient work has been completed to date to enable a JORC compliant resource estimate to be determined, the company said.

?It is proposed that initial activity will be concentrated on the exploration and development of underground coal resources. The intention is to secure a long term off-take agreement from a partner that will undertake all exploration and development activities in return for future delivery of coal,? the company said. (denny)