Paramount sign key coal agreement with Antam

Australian metal exploration firm Paramount Mining Corporation Ltd announced on Wednesday that a key coal agreement has been concluded between PT Aneka Tambang (Persero) Tbk?s (Antam) recently established coal mining subsidiary, PT Indonesia Coal Resources, and Paramount?s Indonesian subsidiary PT Paramindo Energi.

Under the memorandum of understanding (MoU), both parties have agreed to identify prospective coal mining and related infrastructure projects in Indonesia that are suitable for development as strategic alliance joint-venture projects. Paramount?s involvement starts from exploration project identification, to development of mining operations and associated infrastructure, through to coal market development and sales.

At the same time, the MoU provides for a subsequent Coal Supply Agreement, which will give Paramount access to Antam?s coal production for export to key regional markets at a time of strong international demand.

With a market capitalisation of $2.4 billion, Antam is a leading Indonesian diversified mining and minerals processing company. Antam has identified in Paramount a partner with needed experience in the coal sector, and the expertise to develop key projects from grass roots through to sales. This new agreement is integral to Paramount?s strategy to grow its Indonesian-focused gold and coal project portfolio

Paramount?s chairman Mo Munshi said, ?We are delighted to have secured this agreement, which we regard as a key step toward achieving Paramount?s objectives to grow its gold and coal businesses in Indonesia.?

In June 2010, Paramount concluded a strategic cooperation agreement with Zurily Resources and Trading Pte Ltd, a Singapore commodity trading company. (kanti)