Realm focuses on maximizing value of C. Kalimantan coal project
Thursday, July 31 2014 - 05:23 AM WIB
ASX-listed Realm Resources Ltd said it continues its focus on securing buyers and/or strategic off take partners and financing for its development ready Katingan Ria thermal coal project in Central Kalimantan.
?Despite robust demand growth, the thermal coal seaborne market has remained in oversupply; with the price of Katingan Ria 4,200kcal GAR coal falling further to around US$36/ton.,? the company said in a statement Thursday.
?Strategic partner negotiations have therefore been focused on domestic supply opportunities and specifically PLN?s (Indonesian State owned Electricity Corporation) proposed 200MW power station development in the vicinity of (the town of) Kasongan,? it added.
During the second quarter of this year, the company said it focused efforts on buyers seeking exposure to the high growth Indonesian energy sector via securing strategically located coal assets ahead of planned power station developments.
Realm said its 51 percent owned Katingan Ria thermal coal project is ideally suited to supply a proposed 2x100Mw mine mouth power station in Central Kalimantan. ?This has seen discussions being advanced with larger Indonesian mining and logistic conglomerates and international power station developers. We expect further details on the power station tender process to emerge following the recent election in Indonesia.?
This has the potential to see the Katingan Ria mine being developed largely as a domestic coal supplier, Realm said. Coal supply, which is required by 2018/19 for the power station, could therefore be developed for both domestic and export markets (assuming export prices recover from current lows).
Editing by Reiner Simanjuntak