Jatenergy updates Indonesian coal projects
Thursday, July 28 2011 - 07:29 AM WIB
Jatenergy announced during the first half of 2011 the appointments of the following key personnel to build its expertise in coal including:
? The addition of Alan Broome to the board of Jatenergy Limited. Alan Broome has more than 20 years? experience in the secondary metals industry as a metallurgist and 20 years? experience in the mining industry. He holds ASX-listed chairmanships (Nimrodel Resources and Endocoal) and directorships, (Micromine, Inbye Mining Services, WorkPac Group, Buccaneer Energy, Solid Energy (NZ) and CRL Energy (NZ).
? The recruitment of Chris Flanagan as Chief Operating Officer ? Coal in Indonesia operations. Chris 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, where he was Mining Director for Gloucester Coal. He has spent the last 6 years in Indonesia, building expertise in mining operations, project identification, coal supply and coal industry regulatory processes.
? The addition of Nick Croom to the boards of Jatenergy?s Singapore entities - Nick has 20 years? experience working in commodity trading and investment banking in Sydney, London and Singapore for ANZ, BNP Paribas, Glencore, RBS Sempra and JP Morgan. While in Singapore, his core responsibilities included origination of investment banking transactions and product development surrounding physical commodities with imbedded risk management.
During July 2011, Jatenergy has also established an office in Jakarta in support of its local operations.
Incorporation of PT Barata Energy
PT Barata Energy will hold project rights to the Atan Bara project. PT Barata Energy received its investment licence from the foreign investment regulatory authorities (the BKPM), but is still in the process of final incorporation which is anticipated by the end of Q3, 2011. Under Indonesian law, PT Barata Energy is able to enter into contracts and is effectively now in operation.
Atan Bara Project
The Atan Bara project is a contractual arrangement between PT Barata Energy and PT Atan Bara Sejahtera (ABS). Under this arrangement, PT Barata Energy has exclusive rights to conduct coal mining, and an exclusive right to purchase or market any coal mined from the Atan Bara project. The more detailed commercial terms are to be established in the two contracts; a Mining Services Agreement and a Coal Offtake Agreement.
These contracts are on foot but were not executed as at 30 June 2011. Jatenergy anticipates the execution of these contracts in the next quarter, in conjunction with the granting of the Production Licence currently under application. First coal production is targeted before the end of 2011. (end of excerpt)
Katingan Project
Jatenergy Limited entered into a conditional share purchase agreement to acquire 80% of the shares of PT Coal Soil Brik. The timing of completion of this agreement is primarily determined by the process of converting PT Coal Soil Brik into a foreign investment vehicle and obtaining the necessary government and regulatory approvals. As at 30 June 2011, the outstanding approvals from the Ministry of Forestry and a letter of support from the local Bupati were still in progress, with completion of the transaction targeted before the end of 2011. (end of excerpt)