HK firm closes E. Kalimantan coalmine acquisition

NT Holding Corp. Announces Acquisition of PT Borneo Hong Kong-based mining firm NT Holding Corp. announced on Tuesday the closing of a definitive agreement to acquire 70 percent shares of PT Borneo Mineral which owns a coal concession in Sebulu, East Kalimantan.

The concession has a total of area of 19,191 hectares and an estimated saleable reserve of coal of approximately 22 million tons.

The company said that the mine at Sebulu has the advantage of being close to the barge loading facility on the Mahakam River and therefore there is no need to rely on road transport. "This gives PT Borneo a competitive edge on the production cost against many other mines. The existing management and owners of PT Borneo will be responsible for the day-to-day operations of the JV Company," the company said.

The closing of the acquisition is subject to the approval of the Indonesian Government and due diligence on the concession rights and legality of PT Borneo by the Company's Indonesia legal counsel, said the company.

The company earlier last month also formed a joint venture with Indonesian coal concession holder PT Global Indonesia Mining Limited to carry out coal mining and related export business. NT Holding has a 70% interest in the Joint Venture.

NT Holding, through its subsidiaries, invests in and operates companies in China that engage in energy and natural resources businesses. NTHH is based in Hong Kong and operates subsidiaries in China and Indonesia on energy and natural resources projects.(alex)