Lanna acquires E. Kalimantan coalmining concession

Thai coal miner Lanna Resources announced on Tuesday it had acquired a coal mining concession in East Kalimantan.

In an announcement made availabe to The Stock Exchange of Thailand, Lanna said it would acquired 55 percent shares of PT. Citra Harita Mineral (CHM), which will undertake exploration and coal mining activities within the concession area of CV. Cahaya Tiara (CT) in Samarinda, East Kalimantan.

CHM has entered into the Coal Mining Cooperation Agreement with CT on June 15, 2004, in which CT granted rights to CHM to carry out exploration and coal mining activities within the concession areas (Kuasa Pertambangan or KP) of CT for the entire concession period. The two concessions cover the area of around 1,600 hectares.

According to the preliminary survey, the coal reserve is estimated at 10 million tons, having an average calorific value of 6,300 kcal/kg. The coal production and distribution is scheduled within 2005, with investment capital estimated at US$2,000,000.

Singaporean firm Pan-United Investment Pte. Limited will hold 10 percent shares in CHM while unidentified company, which formerly owned 100 percent shares of CHM, held the remaining 35 percent.

Lanna is already in Indonesian coal mining business through its 63 percent ownership in medium sized East Kalimantan mining company PT. Lanna Harita Indonesia, which has production capacity of around 2 million tones per annum.

Earlier Lanna said it would spend $ 45 million to acquire three mining concessions in Indonesia (alex)