Several parties interested in Katingan Ria coal project
Thursday, October 31 2013 - 01:50 PM WIB
ASX-listed Realm Resources Limited announced on Thursday that several parties have expressed interest in its coal project in Centra Kalimantan.
A comprehensive data room has been opened to interested parties. Discussions and site visits are underway with several parties expressing interest in investing in the project through the Singaporean Holding Company; offering pre-payment finance; long term off-take arrangements; providing logistics solutions; or acquiring the project, the firm said in a statement filed with the Australian Stock Exchange.
?Interested parties include, international and Indonesian vertically integrated power companies seeking to secure coal supply for power stations, international logistics companies seeking to secure coal for their barges, vessels and blending facilities, and coal production majors looking to expand their Indonesian foot print,? the firm said.
The potential to supply the domestic power station development is particularly encouraging given the strategic location of Realm?s Katingan Ria project, the firm said., adding that state owned electricity firm PT Perusahaan Listrik Negara (PLN) has issued a RFP for the construction and operation of two 100 MW power stations downstream from the project?s proposed Upper Stockpile and close to the town of Kasongan.
A number of local and international consortia are active with bids due Dec. 30, 2013, and coal supply of around 1.2 mtpa from 2016/7. Importantly, the bidders are required to secure coal for the power stations. Katingan Ria coal specifications are ideally suited for the proposed power station development. In addition, the project is the most developed in the vicinity from a technical (i.e. JORC reserves) and permitting point of view, thereby enhancing its attraction as a preferred source of supply.
In addition, discussions with Singaporean advisers with a view to the possible listing of Realm?s wholly owned Singaporean subsidiary on the Catalyst Exchange in Singapore, have been initiated.
?These discussions are still at a preliminary stage and any listing would be subject to a number of regulatory requirements,? the firm noted.
The company has 51 percent of the the Katingan Ria project, which spans 4,258 hectares under Mining Business Permit for Operations and Production (IUP OP) No. 545, is located in Central Kalimantan within the Katingan Hulu district, approximately 175 km North West of the regional capital of Palangkaraya.
Editing by Johannes Simbolon