Lanna in coal supply deal with Siam Cement

Thai coal mining group Lanna Resources Limited reported on Friday that its Indonesian unit PT.Singlurus Pratama (SP) had entered into coal supply deal Siam City Cement Public Co., Ltd.

Under the deal, which was signed on Sept 30, 2008, SP will supply two shipments of coal of 35,000 metric tons each with delivery schedule from October 2008 to June 2009.

Siam had paid US$4 million in advance payment on October 10, 2008. SP will offset advance received with 2 shipments of coal of $2 million each, the company said.

SP, which is located in East Kalimantan, is scheduled to start commercial production at the end of this year. The output will reach around 100,000 tons in the beginning and ramp up to 1 million in 2009, a Lanna official said in June 2008 interview.(denny)