Pan Asia in coal supply deal with Noble
Monday, August 23 2010 - 01:32 AM WIB
Noble has agreed to purchase 4.8 million tons of coal over the next four years from Pan Asia?s Nadvara mine in East Kalimantan. Noble has provided prepayment finance totalling $2 million, the company said in statement.
The Nadvara project is one of a number that Pan Asia holds right to acquire under the terms of the acquisition of Innovation West.
?These projects will provide a mix of immediate cash-flow -from the provision of finance, a flagship project nearing development, advanced high potential exploration projects and a pipeline of additional project opportunities. The locking in of this financing is the last commercial item securing the rights to the package of thermal coal projects & the company will now be moving forward expeditiously to complete the transaction,? it said.
Pan Asia CEO Alan Hopkins said: ?Via the acquisition of Innovation West we will now not only have a significant portfolio of advanced coal projects, but with Noble as an international off-take partner, we are well placed to achieve our ambitions of becoming a significant supplier of competitively priced energy into the emerging Asian markets?.
The company?s rights to coal from the Nadvara mine form part of the Innovation West acquisition and the preparation of notice of meeting to approve the acquisition is well advanced and an announcement on this will follow in the short term.
According to Pan Asia in earlier statement, Nadvara is in production stage with current production of 1.5 million tons per annum, Gross Calorific Value of 5,300 - 5,500 kcal / kg (adb) and JORC reserve and resource of 25.5 Mt with additional potential. (denny)