Jatenergy fails to divest unit, withdraws from coal activities in RI
Wednesday, December 23 2015 - 09:43 AM WIB
ASX-listed Jatenergy Limited said Wednesday that the lingering drop in coal price has caused the company to fail in completing the sale of coal tenements held by subsidiary PT Coal Soil Brik in Katingan, South Kalimantan, this year.
"Due to the continuing low coal prices, failure of the party interested in acquiring the tenements held by the company?s PT Coal SoilBrik to complete due diligence and following the recent Paris Accord, it has been decided to withdraw from all coal activities in Indonesia," Jatenergy said in a statement.
"As a result,the Group is withdrawing from all contracts in relation to coal. The Directors will therefore be writing off the $1,225,800 ? Assets Available for Sale in the balance sheet as at 31 December 2015."
Jatenergy was supposed to sell the Katingan coal project to Indonesian firm PT Prakarsa Corporindo.
Editing by Reiner Simanjuntak