PHI Energy, Garuda Coal eyeing Indonesia coal venture
Friday, February 25 2011 - 01:20 AM WIB
PHI Energy expects to conclude a joint venture agreement with Garuda Coal within 30 days of the signing of the letter of intent. PHI Energy will be the controlling shareholder in the joint venture company, providing off-take contracts and financing to the project while Garuda Coal will be responsible for securing necessary concessions rights and managing local administrative and regulatory affairs.
The contemplated joint venture company will be domiciled in the Republic of Indonesia with key clients from China, India and Korea, aiming to secure sufficient coal resources to support monthly production of one to two million metric tons with 15 to 20 years of life, PHI Energy minority shareholder PHI Group said on Thursday.
Edwin Cussoy Indradewa, Chairman of Garuda Coal, stated, "We look forward to concluding the joint venture agreement, implementing key tasks of the business plan and achieving major milestones that will create tremendous synergies and economic benefits for all parties involved."
Allen Wu, Chairman of PHI Energy Corp, said, "We are delighted to cooperate with Garuda Coal in this important energy initiative and are confident that with a potential large source of supply and foreseeable sizable off-take contracts, the joint venture should be very successful in the near future."
Founded originally in 2005 as Providential Oil & Gas, Inc., PHI Energy Corporation has been engaged in oil and gas joint ventures with various U.S. companies in Texas, and California. The Company has signed an agreement with AXN Group, LLC to engage in coal and other energy-related commodities.
Garuda Coal Pte Ltd is a subsidiary of Garuda Resources Pte Ltd (GRL), a holding company established in Singapore to focus on investing in natural resources of Indonesia. GRL also has subsidiaries Garuda Gold Pte Ltd, Garuda Nickel Pte Ltd and Garuda Iron Pte Ltd. (alex)