SEAE gets supports to develop infrastructures in South Sumatra
Monday, April 23 2012 - 04:19 AM WIB
Australian-listed firm South East Asia Energy Resources Pte Ltd (SEAE) stated it had received a signed letter of intent to support the provision of ?exclusive permit to develop and invest in Muara Enim Regency? from the Regent of Muara Enim, South Sumatra, subject to general commercial conditions.
The Muara Enim project comprises of the development of a 20 million ton per year capacity international coal port, a major regional haul road network and development of a minimum of four thermal coal concessions.
The decision resulted from in depth discussions and requests by the privatized local government companies (Perusda) to develop Muara Enim?s vast resource and infrastructure potential.
The support is expected to lead to the completion of a pre-arranged 90 percent : 10 percent Joint Venture arrangement between SEAE and the Muara Enim Perusda, respectively, to develop the Muara Enim Project. Binding final agreements are being prepared by the companies lawyers and are expected to include standard commercial terms and conditions. The company stated that further announcements will be made once formal binding agreements have been completed.
Under the proposed Joint Venture arrangement, the Perusda will be responsible for securing and managing all permits, licenses, and legal documents as well as arranging support from the Mining Department, the Transport Department and the Bina Marga for construction approvals. Whereas, SEAE, utilising the services of United Mining Australia and Indonesian expertise, will be responsible for the investment, planning, design, financing, construction, operation and management of the proposed Muara Enim Project hauling road, port, jetty and coal processing plant.
The Muara Enim PERUSDA, a self funded privatised local government company, has entered into eight successful joint venture partnerships over the past 10 years, including seven coal and gas projects currently in full production.
SEAE expects to begin a detailed feasibility study on the port, haul road and coal concessions within the 2nd quarter of 2012. It is expected that the feasibility study will take between 6 to 9 months to complete at an estimated cost of $1.5M utilising Australian, Indonesian and international expert consultants.
Subject to satisfactory results, SEAE plans to develop an extensive haul road network to service the Muara Enim region and develop a world class coal port facility to handle initially 2O million tons per year as well as a coal processing plant. SEAE also plan to secure and develop a minimum of four coal concessions within the region.
The Muara Enim ? Lahat coal region is reported to contain more than 13.56 billion tons of undeveloped thermal coal held in more than 60 coal concessions. Muara Enim regency is located within the resource rich area of South Sumatra which contains in addition to large reserves of coal, undeveloped CBM, oil, gas and copper.
Presently, there are only 14 active coal concessions in the Muara Enim ? Lahat region due to the lack of transport infrastructure. The above arrangement is a major step forward for the local government to open up the region for larger scale and wider regional resource production.
Editing by Audy Zandri