Killara to acquire Nunukan coal project

By Demas Simbolon

ASX-listed Killara Resources Limited said that the company has entered into Memorandums of Understanding (?MOU?s?) to acquire an 80 percent shares of two large coal concessions of Nunukan Coal Project in East Kalimantan.

The Nunukan Coal Project consists of two concessions that cover a combined area of about 13,000 ha that form part of the largely underexplored Tarakan Basin coal province with its Meliat, Tabul and Naintupo Formations. Field evaluation would start within days, said the company in its statement to the ASX.

The company also said that coal mining exploration was carried out in the area by PT Medco Energi Mining Internasional (MEMI) on its concession 6 km to the south of the Nunukan Coal Project. Of the 389 drill holes completed by MEMI on its ground, average coal specifications are low ash (9%), high sulphur (3%) and high energy (6,800Kcal/Kg) for a direct ship coal product.

Executive Director Darren Misquitta said ?We are very happy to be progressing with this transaction on behalf of the company which is in line with our original corporate strategy.?

Editing by Adianto P. Simamora