Jatenergy recommences operations at Jongkang I, II mines

By Ruli Setiawan

Australia-listed firm Jatenergy said that it has recommenced operations at its Jongkang I and II coal mines in East Kalimantan.

Jatenergy began operations at Jongkang in late 2011. Under its arrangements with local firms CV Wijaya Mulia and CV Karya Putra Bersama, Jatenergy earns 30 percent of the net margin plus a marketing fee and marketing rights from these operations.

Both Jongkang I and II offer high quality thermal coal with high gross calorific values of 6,500 kcal/kg (adb), sulphur below 1% and low ash and moisture. In March 2012, Jatenergy completed its first shipments of coal from the Jongkang projects.

Following a drop in the price of Indonesian coal, a decision was made earlier this year to suspend some operations. Jatenergy has been approached by several buyers wishing to conclude a life of mine off-take agreement, the company said in a statement Tuesday.

?It is anticipated that such an agreement will be made following the recommencement of sales and an initial trial cargo. This would provide greater certainty for the operations, allowing them to operate profitably for the foreseeable future and to provide the cash flow to support Jatenergy?s Indonesian coal and jatropha operations,? Jatenergy said.

Editing by Adianto P. Simamora