Jatenergy fast tracks Indonesian coal development plans
Tuesday, May 31 2011 - 01:30 AM WIB
The Atan Bara mine is expected to be in commercial production of high quality thermal coal before the end of 2011, with an intended monthly production capacity of over 20,000 tonnes and a mine life of up to 2-3 years, Jatenergy said in a statement on Tuesday.
Jatenergy?s Chief Executive Officer Phil Hodgson said the decision came as coal prices continue to rise strongly on the back of increased demand from Asian buyers. ?We expect to find a ready market for Atan Bara coal, so it makes sense to develop the resource as quickly as we can. Our production mining permit application is currently with the regional mayor for final approvals, we have completed our early mine-plan drilling schedule, we are in final negotiations with the local land-owners and we are reviewing a short-list of contract mining companies.?
The Jatenergy board also agreed to seek similar coal development opportunities in Indonesia so as to boost the company?s near-term cash generating capacity and advance its planned exploration and development program on the large-scale Katingan coal project in Central Kalimantan.
Evaluation of the Katingan coal resource, which is estimated to have a mean exploration target of 39.8 million tonnes, will continue over the next 18 months to two years. Previous exploration has identified several coal seams, some with a true thickness greater than 6m.
The company's board also approved the appointment of an experienced coal industry executive, Chris Flanagan, as Jatenergy?s Chief Operations Officer, Indonesia, to oversee its Indonesian coal activities. Having lived in Indonesia and worked in the Indonesian coal industry sourcing and developing projects for the past 6 years, Chris has a thorough understanding of the local mining market, regulatory regime and players. He has a Bachelor of Science in Mine Engineering (honours) from The Royal School of Mines in London, and more than 30 years? experience in South Africa, Ghana, the UK and Australia.
Jatenergy?s purchase of the Indonesian coal assets was completed last February. The company has since announced it has executed binding offer letters to acquire additional coal tenements in the Galilee Basin and Bowen Basin in Queensland.
Jatenergy has adopted a dual energy strategy ? to generate cash flows from coal mining while also expanding its jatropha-based biofuel operations in Indonesia ? as a critical long term move based around current energy demand patterns within Asia and long term factors including the introduction of carbon taxes and climate change. (romel)