Magnus, Bulk Trading sign MoU to develop Batubara Selaras coal mine

Singaporean company Magnus Energy Group Ltd has signed a memorandum of understanding (MoU) with Switzerland-based independent energy company Bulk Trading S.A. to explore and develop Magnus? coal concession in Indonesia.

Magnus said in a statement released on Wednesday that the MOU gave Bulk Trading the right to survey the entire concession of PT Batubara Selaras Sapta in Pasir regency, East Kalimantan, over a period of three months.

Magnus, through its wholly-owned subsidiary Antig Investments Pte Ltd, has a majority interest in PT Deefu Chemical Indonesia, the holding company of PT Batubara Selaras. PT Batubara holds a third generation Coal Contract of Work (CCoW) over the concession.

Under the MoU, Bulk Trading is also granted the exclusive right to invest in PT Batubara Selaras during the survey period and an option to choose up to five specific locations or the entire concession to conduct feasibility study for another three months.

?As a global coal trading company, Bulk Trading has particular interests in Indonesia... We are pleased to enter into this partnership with Magnus, which allows us to move forward together to examine the potential coal reserves, coal quality, logistical and other operating and commercial issues relating to a future investment in PT Batubara,? said Bulk Trading's president Raoul Avallone.

Magnus and Bulk Trading will execute a conditional sale and purchase agreement whereby Bulk Trading is granted the option to purchase up to 51 percent equity interest in PT Batubara for a price to be negotiated. (Robert)