GMT, BJPE reach coal mining deal
Tuesday, July 2 2013 - 02:43 AM WIB
SGX-listed Geo Energy Resources Limited said on Monday that its subsidiary PT Geo Mineral Trading (GMT) has on 1 July 2013 entered into addendum to mining cooperation agreement with PT Bumi Jaya Prima Etam (BJPE).
Under the deal, the parties agreed to include an additional work block of approximately 149.5 hectares (Work Block III) as part of the cooperation area.
BJPE guaranteed that the high thermal coal potential in Work Block III shall be approximately 1,000,000 tons, and GMT was given an exclusive right to purchase the coal produced from Work Block III at US$53 per ton.
The company said in the statement that GMT shall make an upfront payment of US$7.7 million to BJPE within 14 days from the date of the addendum.
Editing by Adianto P. Simamora