Singapore?s Magnus Energy to expand coal business to Jambi

Singaporean firm Magnus Energy Group Ltd through its wholly-owned subsidiary, Green Heritage Overseas Ltd, has entered into an agreement to acquire a 70 percent equity interest in PT Kumala Mulya Sejati (KMS), a company that holds rights to manage a coal mine in Rantau Pandan, Muara Bungo, Jambi province, for US$600,000.

According to Magnus? statement on Monday, the KP license on the coal mine is held by PT Tambulan Panual Jaya (TPJ). TPJ has also secured marketing and transportation licenses for 10 years until Sep. 20, 2016.

KMS was granted the rights to conduct feasibility studies on, market, sell and transport the coal extracted from the 80-hectare coal mine.

Based on the feasibility study, the coal mine has a low stripping ratio of between approximately 1:3 and 1:5 and has a mineable reserve of at least 3 million tons in the first proposed mine site.

The coal quality has a gross calorific value of 6334 Kcal/kg and a low sulphur content of 0.65 percent with all other parameters in the normal range.

KMS has hired PT Bumi Borneo Internusa to carry out production process. Bumi has started mobilizing equipments. It targets to produce 10,000 tons of coal by first week of December 2006 and 30,000 tons per month thereafter.

Magnus, through its wholly-owned subsidiary Antig Investments Pte Ltd, previously acquired a majority interest in PT Deefu Chemical Indonesia, the owner of 95 percent shares in PT Batubara Selaras Sapta, a third generation Coal Contract of Work (CCoW) holder with concession in Pasir regency, East Kalimantan. (Robert)