Singapore firm enters W. Sumatra coal mining business
Tuesday, March 11 2008 - 12:23 AM WIB
The company said that its newly incorporated Indonesian subsidiary PT Merlion Resources International (Merlion) will carry out mining works at Dasacita?s 184 hectares concession located at Mt Galugua, West Sumatra.
Dasacita has right to explore and exploit the mining concession for 30 years and is in the process of expanding these rights to allow it to further develop, exploit and export coal from the mining concession of up to 7,000 hectares, the company said.
The company claimed that based on report prepared by valuer Jones Lang LaSalle Sallmanns Ltd coal reserves on the mining concession was valued at approximately US$718,900,000 based on preliminary coal reserves estimate of up to 40 million tonnes .. Out of this, approximately 25 million tonnes of these coal reserves can be effectively mined by open-cut method, the company said. It added that the report said the quality of coal is of premium quality with CV range from6,900 to 7,200 Kcal/kg based on sample from exposed seam.
The company through its other subsidiary has also signed offtake deal with Dasacita where it would purchase all coal produced from Dasacita?s mine. (denny)