Singapore?s Magnus Energy acquires Indonesian coal concession

Singapore Exchange-listed firm Magnus Energy Group Ltd. announced on Tuesday it had entered into conditional shares sale and purchase agreement to acquire 72 percent shares of PT.Deefu Chemical Indonesia, which owns a coal mining concession in East Kalimantan.

Magnus said in a report filed to the Exchange that the company will pay US$ 18 million to acquire Deefu, which owns 95 percent shares of PT.Batubara Selaras Sapta (BSS), a third generation coal contract of work (CCoW) holder with concession in Pasir regency, East Kalimantan.

Magnus claimed that, according to preliminary survey done on outcrops and drilling in the prospect area, BSS coal concession, which is still at exploration stage, has 500 million tons of inferred and indicated coal reserves with calorific value ranged from 6000 to 7000 Kcal/kg. Using a conservative mineable, economical and extractable of only 10 million tons, BSS was valued at US$26.47 million using Modern asset pricing Model, said Magnus in the report. (alex)