Jatenergy: Excavators on site to begin rework of Jongkang coal mine
Wednesday, June 4 2014 - 01:37 AM WIB
ASX-listed Jatenergy Limited said on Wednesday that excavators have arrived and have started on the Jongkang coal mine site in East Kalimantan as the company starts to resume mining operation following the arrival of dry weather.
Initially the road will be leveled to provide better and safer access to the mine site. Work will begin on coal previously located and marked for excavation, the company said in a statement.
?Having only 1 meter of overburden to remove, this is easy access coal, allowing us to provide immediate product to barge? said Chris Flanagan COO of Indonesia operation.
Jatenergy announced on May 28 it has negotiated a US$100,000 loan to finance the mobilization of excavators and trucks to the Jongkang coal mine.
Jatenergy said in the Wednesday statement that for clarification, the loan is from a Jatenergy substantial shareholder (Adam Hajek), providing Jatenergy with extra capital to rework the Jongkang mine site.
It is a profit share arrangement earning 50 percent of Jatenergy?s residual share of the profit from the mine, for the life of the mine. There is no interest payable on the loan and the only return to Hajek is his share of the profit for the remaining life of the mine. Repayment of the loan either in full or part does not affect the profit share distribution. At Jatenergy?s sole discretion the loan can be repaid through the issue of Jatenergy fully paid ordinary shares at an issue price of 2 cents.
Jatenergy can elect to repay the loan at any time in part or in full during the life of the operation of the mine. The profitability of the mine, will be determined by Jatenergy in its sole discretion, the company said.
The Jongkang I and Jongkang II projects are currently in production and produced around 35,000 tons over the past year. Located in East Kalimantan approximately 5 km along an existing haul road from the Mahakam River, and about 25 km from a major hub of Indonesia?s coal industry at Samarinda, each concession is covered by a production license comprising 100 hectares.
Editing by Reiner Simanjuntak