Pan Asia signs land compensation deal for S. Kalimantan coal project

By Ruli Setiawan

ASX-listed Pan Asia Corporation said Wednesday it has signed a compensation memorandum of understanding (MoU) with representative of the occupants of the land required for TCM project infrastructure.

?Under this MoU, TCM came to an acceptable compensation agreement with the local representative of the occupants at an agreed rate per hectare for the area actually used, (probably around 30 hectares). A more detailed agreement will be negotiated in due course,? the statement said. ?It is possible that the updated TCM feasibility study may select a different area for the mine?s surface facilities and as a result it is currently too early to finalise these agreements.?

Pan Asia holds a 75 percent interest in the TCM thermal coal project in South Kalimantan, with the remaining 25 percent held by Indonesian partners. The IUP mining permit for the TCM project covers an area of 3,440 ha.

Editing by Reiner Simanjuntak