PetroAsian in coal shipment deal from Sumatra to China

Hong Kong-listed integrated natural resources company PetroAsian Energy Holding Limited said that it would boost coal shipment from Indonesia to China with the first shipment of 20,000 tonnes of steam coal from Sumatra would be made in November.

?The Group has been arranging the first shipment of coal from Sumatra, Indonesia with about 20,000 tonnes of steam coal scheduled for loading in the beginning of December 2011 for a destination in southern China,? the company said in the statement.

The group has signed contracts with PT China Coal Geology Mining and Fujian Huarong Energy Company Limited to purchase and sell the steam coal in Indonesia with end customers in the Fujian Province of China.

?Up to the end of September 2011, a contract for a total of 52,000 tonnes of coal has been signed,? it said.

The Company entered into a 70:30 joint venture agreement with the shareholder of Ding He Trading Limited (?Ding He?), a company based in the Zhanjiang City of the Guangdong Province to carry on coal trading business on January 1. 2011.

The business includes the import of coking and steam coal into China. Upon request from Ding He, the Group has taken over the management of the business and operations with effect from 1 July 2011.

The focus of the Group is to increase the volume of coal transactions, resolve financing issues and reduce operating costs. The Group has also signed contracts with PT. China Coal Geology Mining and Fujian Huarong Energy Company Limited to purchase and sell steam coal in Indonesia with end customers in the Fujian Province of China. (adianto/romel)