HK?s NT Holding enters Indonesian coal mining business

Hong Kong-based firm NT Holding Corp. announced last week it had signed Indonesian coal mining and export joint venture deal with an Indonesian company called PT Global Indonesia Mining Limited. Under the deal, NT will have a 70% interest PT Global will have a 30% interest in the Joint Venture.

The Joint Venture will have a total authorized and paid up capital of US$1,200,000. PT Global will contribute its right of concession on the coalmine as capital for 30 years to the Joint Venture and the Company will contribute cash to the joint Venture Company as its respective equity capital. PT Global will vest into the Joint Venture the right of concession on a coalmine with a total area of approximately 68,000 hectares. The company did not say where in Indonesia Global?s coal mining concession is located.

PT Global will also assist the Joint Venture to operate the business, including overseeing the construction of an access road, port, equipment and labor if necessary. PT Global will also assist the Joint Venture in controlling the cost of output and locating the coal with good quality, having gross calorific value of at least 6.000 Kcal/Kg, said the company.

The Joint Venture is subject to the approval of the Indonesian Government and due diligence on the amount of reserves by the company. (alex)