Mercuria acquires 1st Indonesian coal mine
Tuesday, November 16 2010 - 02:00 PM WIB
The purchase of this brown fields operation represents a strategic investment by Mercuria to create an additional growth platform for its coal trading activities, it said.
The concession covers an area of 6000 hectares in SE Kalimantan, of which 2500 hectares are currently being exploited. First geological due diligence promises exceptional further development in terms of resources available but not yet extracted.
"The acquisition of this existing facility continues the build out of Mercuria's international coal strategy. It will bring investment to the Indonesian and regional markets and further strengthen Mercuria's coal trading capability for its global client base, " Paul Chivers, Mercuria Chief Investment officer said.
The concession is strategically equipped with a haul road and a barge loading facility. These amenities will ensure fast and efficient coal transportation in the region and abroad. Current plans are to develop this operation into a 2 million ton per annum exporter of its own good quality bituminous coal.
The company did not give the name of the concession nor the value of the acquisition. (robert)