Geo's GMT, Bumi Jaya enter into mining cooperation deal
Saturday, May 11 2013 - 01:15 AM WIB
SGX-listed Geo Energy Resources Limited reported on Friday that its subsidiary PT Geo Mineral Trading (GMT), has entered into Mining Cooperation Agreement with PT Bumi Jaya Prima Etam (BJPE).
Under the agreement signed on May 10, the parties agreed to include an additional work block of approximately 120 hectares (Work Block II) as part of the cooperation area.
It said that BJPE guaranteed that the coal potential in Work Block II shall be approximately 910,000 tons of semi coking coal and high thermal coal, and GMT was given an exclusive right to purchase the coal produced from Work Block II at US$65 per ton. GMT shall make an upfront payment of US$7 million to BJPE within 7 (seven) days from the date of the agreement.
The exploration results were made available to MNP, which has commenced drilling and boring works at Work Block II to ascertain the coal deposit. MNP will continue to provide mining services to Work Block II exclusively.
The agreement would be effective from the date thereof until the production and sale of coal from Work Block II reaches 910,000 tons or the parties agree that the coal potential in Work Block II shall not be feasible to conduct further mining.
Editing by Adianto P. Simamora