Jongkang mine set to be reopened, update on Coal Soil Brik sale
Thursday, February 20 2014 - 12:44 AM WIB
ASX-listed Jatenergy Limited announced on Thursday that the Jongkang mine site in East Kalimantan is ready for coal mining with the abatement of the strong wet weather conditions.
Heavy monsoon rains in the Jongkang area have delayed reopening of the old mine and the establishment of the new pit at Wijaya Mulia. November, December and January are known as the peak of the wet season in eastern Kalimantan, the company said in a statement.
Chris Flanagan Indonesian Manager said: ?This year the rain conditions made opening the mine pointless. We would have been opening the mine and then having to drain it continuously and at cost. We decided to wait till the rains ceased to proceed with production from this site. In the meantime our local partner has carried out further drilling to assist in planning the mine excavation.?
The Jongkang I and Jongkang II projects have produced around 35,000 tons over the past year and were developed in December 2011 as part of a Joint Venture arrangement with a local Indonesian partner. Located in East Kalimantan approximately 5 km along an existing haul road from the Mahakam River, and about 25 km from a major hub of Indonesia?s coal industry at Samarinda, each concession is covered by a production license comprising 100 hectares.
ASX-listed investment firm Chapmans Ltd announced late last year it was investing US$200,000 at the Jongkang coal project to increase production, in exchange for a 50 percent profit share with Jatenergy.
Elsewhere, Jatenergy said that it will now open the sale PT Coal Soil Brik to third parties as the initial buyer candidate PT Prakarsa Corporindo has yet to conclude the transaction. Jatenergy is divesting ownership in the coal project to focus on other coal assets.
?The board of Jatenergy will now open the sale of the Coal Soil Brik to third parties to expedite a sale,? the firms said.
Jatenergy CEO Tony Crimmins CEO said: ?We understand now that there is a Power Station bid in Katingan area that requires a source of coal to ensure supply for the power station. This makes the site more attractive as it will have a potential buyer in the area?. Jatenergy seek any expression of interest in this site.
The project is located 160 km northwest of the city of Palangkaraya in the South Kalimantan Province on the island of Borneo.
Editing by Reiner Simajuntak