Lian Beng gets coal transportation contract from S. Kalimantan miner

Singapore-based company Manhattan Resources Limited announced that its indirectly 50percent-owned Indonesian unit PT. Lian Beng Energy (LBE) has signed a Conditional Contract with Kalimantan coal mining firm PT. Wahana Baratama Mining (WBM) to provide coal transportation services at the latter?s mine site located in Satui, South Kalimantan.

The company said the estimated value of the contract was US$11.73 million.

Under the two-year contract signed August 2, 2007, LBE will provide transportation of coal from the intermediate crushing facilities to coal processing pant, maintaining haul roads and stockpiling the coal.

LBE is committed to supporting WBM?s production targets of 2.5 million tonnes in the first year of the Conditional Contract and 3.25 MT in the second year. In any extended term, LBE is committed to supporting production targets of 5MT in the third and fourth years, 5.3MT in the fifth year and 5.4 MT in the sixth year, Manhattan said on Friday.

WBM has a third generation coal contract of work signed on Nov. 20, 1997 to operate a 7,811 Ha concession in South Kalimantan. Based on the results of exploration carried out since 1997, an area measuring 78 km2 (from Block I to Block III) contains coal deposits feasible for mining.

Australian contractor Leighton, which won mining contract from WBM, said in June 13, 2007, that production from the mine was expected to commence soon. (alex)