Orpheus becomes a coal producer

By Romel S. Gurky

Australia-based firm Orpheus Energy Limited announced that it had secured rights to a 50 percent equity interest in PT Mega Coal?s Alam Duta Kalimantan (ADK) mine in South Kalimantan.

The agreement was executed by Orpheus? wholly owned subsidiary, Orpheus Energy Group Pty Ltd (OEG).

Under a heads of agreement, the two firms will establish a joint venture to manage the mine. Until the equity holding and operational due diligence is finalized, the joint venture is in place providing OEG with 50% of net profits of ADK?s coal mine operations.

The ADK mine is located in Tanah Laut, South Kalimantan. The title permit is held in the company PT. Alam Duta Kalimantan, part of Mega Coal?s corporate holdings.

The mine is a conventional truck and shovel operation and has been in production since April 2011, with 95,000 tons shipped over the last three months. The mine has an existing stockpile of 56,000 tons.

Editing by Dadan Wijaksana