HK firm to acquire Bengkulu iron ore mines
Wednesday, February 3 2010 - 03:40 PM WIB
Hong Kong Stock Exchange-listed firm Dore Holdings Limited announced Wednesday it has signed an MoU with undisclosed company to acquire iron ore mines in Seluma, Bengkulu province in Southern part of Sumatra.
The MoU is subject to the ability of the target company to obtain exploitation and production licences.
Upon successful transaction the target company will be entitled to receive US$6 per tonne of iron ore shipped.
The mines have an aggregate area of approximately 10,000 hectares and an estimated reserve of approximately 90 million tonnes of iron ore.
The Indonesian company that runs the mine claimed to have obtained the exploitation and production licences for 5,000 hectares and is in the process of obtaining the licences for the remaining area.
The mine is expected to start production in the second half of this year. (alex)