HK firm completes C. Kalimantan coal mine acquisition

Hong Kong-listed firm eForce Holdings Limited said on Thursday it has completed acquisition of a coal mine in Indonesia on July 13, 2011.

Under the deal, Eforce acquired shares of PT Karya Dasar Bumi, which in turn controls PT. Bara Utama Persada Raya (BUPR).

BUPR is the holder of a coal mining license (IUP) in a 4,100 hectare area located in East Barito regency, Central Kalimantan. Based on the draft Technical Report and the draft Feasibility Report, it is estimated that the mine has 8.7 million tonnes of Measured Resources, 11.5 million tonnes of Indicated Resources and 6.1 million tonnes of Inferred Resources.

According to the production schedule in draft Feasibility Report, the mine is scheduled to commence production in the fourth quarter of 2012, subject to the building of transport infrastructure, including access roads to the Mine and its site facilities.

The estimated period to build access roads and site facilities for the mine is 18 months and production is planned to commence immediately thereafter. The production of coal for the second year is expected to be approximately 450,000 tonnes per year, ramping up to a maximum of 1,800,000 tonnes per year in the seventh year, the company said in February 2011.

The company also said earlier that it will pay the vendor HK$ 500 million in the form of convertible bonds. (romel)