Indian firm acquires Aceh coal prospect

MSE Earthstone Resources FZC, a unit of Indian diversified mining firm Earthstone Group, announced on Wednesday the acquisition of 100% economic rights for coal tenement spread over 2,560 Hectares in the region of Melabouh, Aceh province.

The government had granted a three year Kuasa Pertambangan (a mining right) license to PT Bara Bina Perkasa early this month. MSE Earthstone Resources FZC has acquired 100% economic rights from PT Bara Bina Perkasa and has agreed to invest for exploration and exploitation of the tenement.

Integrated Coal Mining limited, a RPG Group company from India entered into an agreement with MSE Earthstone Resources FZC to jointly explore this tenement. RPG Group has an option to acquire up to 51% economic interest of the mine subject to satisfactory exploration of the tenement.

Earthstone jointly with RPG Group plans to initiate detailed systematic surveys including geophysical studies, drilling and geological logging on the site by April 2009.(alex)