PTT acquires E. Kalimantan coal mines

Thai energy conglomerate PTT Pcl through its unit PTT Mining Limited has secured deal to acquire 4-5 producing coal mining concession in East Kalimantan, a company?s senior official said on Tuesday.

PTT will buy 70 percent stake in the mines, which have started production since late last year and has exported production to China and India. The mines has been producing 1 million tonnes since late 2008, PTT Mining CEO Peerachat Pinprayong told Petromindo.Com on a side line of McCloskey Asia Pacific Coal Outlook Conference 2009 in Bali..

The mines are located near the province?s capital city of Samarinda, he said.He did not give the mines' names.

Sales Purchase Agreement will be signed in January next year along with formation of JV Company, where PTT will hold 70% stake a month after.

He declined to give acquisition value.

He said after PTT would be in charge, the mines? production will be ramped up to 7-8 million tonnes per annum within the next few years.

According to him, the mines has resources of more than 100 million tonnes with JORC-compliant reserves of 40 million tonnes with CV range from 5,200 to 5,800 Kcal/kg (ADB).

The mines? distance to jetty port in Mahakam is around 6 kms and from river port to transshipment point is about four hours, he said.

He also said that PTT Mining has signed an MoU to acquire mines in Lahat, South Sumatra. ?Currently our geologists are in location to undertake due diligence,? he said without giving detail. (denny)