Jatenergy to kick off Jongkang II coal mining this week

ASX-listed mine and energy company Jatenergy Limited said that it had entered into a Joint Operation with a currently producing coal mine ? Jongkang II - in East Kalimantan which would enable the company to commence mining its first coal this week.

The new agreement is in addition to the company?s Jongkang and Atan Bara coal ventures, also in East Kalimantan, which are at an advanced stage of development.

The move to mine coal at Jongkang II comes after Jatenergy entered a new joint venture agreement with CV Karya Putra Bersama, a coal company owned by the same local partner as the Jongkang project.

?This is a landmark event for us. We have now realized our strategic goal of diversifying our energy business. This week we will be mining coal in Indonesia for export to customers in Asia," said Jatenergy?s CEO Phil Hodgson.

?We expect to follow-up in the near future with the development of our other two short-to-production projects at Jongkang and Atan Bara once production licenses are granted.?

The JV arrangements for both the new investment and previously-announced Jongkang project require Jatenergy to provide working capital to earn 30 percent of the net margin for the coal, as well as to undertake full marketing and sales rights to the coal. The Jongkang II transaction is for an operation with an existing production license.

Since CV Karya Putru Bersama commenced mining at Jongkang II, it has sold approximately 40,000 tonnes of coal.

Jatenergy plans to use the cash-flows from its short-to-production coal mines to advance the evaluation and eventual development of its showcase Katingan coal project in Central Kalimantan, as well as continue to develop other coal opportunities in Indonesia and Australia. (romel)