PHI, HBP to join operation to produce thermal coal

US-based energy and natural resources firm PHI Group Inc has signed a letter of intent (LoI) with an Indonesian company PT HBP to jointly operate in producing thermal coal from coal site in South Kalimantan.

The PHI Group and HBP would sign a definitive operation agreement to produce thermal coal with calorific value of 5,900-6,500 kcal/kg with output target of 50,000 tonnes per month.

?Both parties expect to finalize the terms and conditions of joint operation agreement in January 2012,? PHI said in the statement.

The concession area of 80,6 hectares in Jombang, Tanah Bumbu was predicted to have 5,500,000 million tonnes of mineable coal deposits.

Chairman of the PHI Group Henry Fahman said, "While we continue to accumulate energy and natural resource assets in Southeast Asia, partner with coal-fired power plants and introduce advanced clean coal combustion technology to existing and new plants, we believe our activities in the area of joint operation and coal trading with already producing mines will enable the company to generate current revenues and profitability, which will also help our overall long-term objectives."

Meanwhile, President of HBP Djoni Ismail said "We are very excited about this collaboration with PHI Group and believe it will be good for both parties.

Editing by Adianto P. Simamora