PHI Group signs LoI to acquire coal resources in RI
Monday, October 29 2012 - 11:16 AM WIB
PHI Group, Inc. a Nevada based company focused on energy and natural resources, recently announced it has signed new Letters of Intent (LoI) to acquire two coal concessions with total estimated resources of approximately 210 million tons in South Kalimantan and West Sulawesi, Indonesia.
These concessions cover roughly 10,000 hectares of land and have been granted the Operation and Production IUP licenses from the Indonesian government.
According to the agreements, PHI Group will complete due diligence reviews of both concessions and prior to signing definitive agreements to fix the final prices, terms and conditions for closing, subject to satisfactory due diligence results.
The transactions are part of the group's on-going program to accumulate natural resource assets and provide long-term coal supplies to Vietnam and other Asian countries. It is estimated that Vietnam will need to import about 24 million tons of coal a year by 2017.
Group president Henry Fahman said that the company has been in discussions with major international engineering firms and mining contractors in Indonesia to assist in the evaluation, mine planning, and operation of these and other potential concessions.
"(The company) is in the process of investigating other opportunities and will also enter into letter of intent and complete the required due diligence for each transaction in order to make further acquisition decisions. This accumulation program of coal and other natural resource assets will continue for several years to come," he said in a statement submitted to NASDAQ.
Editing by Er Audy Zandri