Indo Setubara invests in Churchill

UK firm Churchill Mining Plc said on Friday that Indo Setubara Limited (ISB) has purchased 6.62% of the company?s shares.

ISB, a company managed by Advaita Partners Limited, is aiming to become a preferred coal supply partner for Indian power producers. It has an interest in several coal concessions in Indonesia and Mozambique, Churchill said in statement.

According to Churchill, Advaita is an investment manager focussed on energy sector, also has mandates for coal supply from several power companies setting up over 10 GW of imported coal based power capacity in South India.

Paul Mazak, Managing Director of Churchill Mining, said: "Churchill Mining welcomes the investment of ISB and looks forward to further developing its relationship with the company. Such a significant investment in Churchill Mining as it fast-tracks its East Kutai Coal Project (EKCP) to production acknowledges the vote of confidence that this investment in Churchill Mining represents."

Churchill is planning to bring EKCP into production late 2009, with ultimate aim to bring the mine to produce 20MTPA.

EKCP has 1.42 billion tonnes of coal resource.(denny)