Lanna to provide $2 million to develop Singlurus coal mine

Thai coal mining firm Lanna Resources PCL has resolved to approve the financial assistance between its subsidiaries, under which Lanna Pte Ltd (LS) will provide a US$2 million loan to PT Lanna Mining Services (LMS).

 

Lanna said in a statement on Tuesday that LMS would invest in the development of PT Singlurus Pratama’s (SGP) coal mining project in East Kalimantan, which is expected to commence its coal production at the end of 2007.

 

LS owns 65 percent shareholding in SGP, while LMS holds the exclusive rights to invest, develop and sell all the coals mined from the CCOW area of SGP.

 

Lanna added the transaction will be undertaken within the second quarter of year 2007.

 

SGP has entered construction stage with initial production is expected to reach 700,000 tons in the first year, ramping up to 3MTPA in 2010-2011, SGP director Ludi Prasetyo said last month.

 

According to government data, SGP will invest a total of $22.5 million to develop the coal mine. (Robert)