Malaysia?s TH Group bags Kalimantan coal mining contracts

Bursa Malaysia-listed firm TH Group Berhad announced on Wednesday that its two mining contractor subsidiaries had been awarded exclusive coal mining contracts in East and South Kalimantan.

The company?s 70 percent-owned Sunshine Paradigm Sdn Bhd (SSP)had been awarded contract to carry out mining activities in coal mining concession owned by PT.Gunung Harang Sejahtera, located in Semboja, near Balikpapan, East Kalimantan. The area of the concession is approximately 960 hectares with a preliminary estimate coal reserves of between 3-5 million metric tones. SSP will perform the coal mining works on an exclusive basis.

Based on the preliminary estimate of coal reserves gathered from geological survey studies, the estimated total contracting fees that SSP is expected to receive over next 5 years of operation is between US$42.0 million to US$70.0 million, TH Group said.

TH?s wholly-owned subsidiary PT Sunshine Indonesia (PTSI) had been awarded mining contract from PT Sasangga Banua Banjar (SSB), which has 2,200 hectares coal concession in with Preliminary estimate coal reserves of three million metric tones in Banjarmasin, South Kalimantan.

The estimated total contracting fees that PTSI is expected to receive over the next 5 years of operation is US$42.0 million, the company said.

TH Group did not say when production from the two mines commenced. (alex)