Singapore?s Penton to produce 2 million tons of coal annually from Jambi

Singapore-based Penton International Ltd said Thursday it had signed a Memorandum of Understanding with UE China (Shanghai) Co Ltd (UEC) on the development of 15,000-hectare coal concessions in Jambi province.

Penton said it intended to immediately exploit the coal reserves in the concessions to produce up to 2 million tons of coal a year and develop a new 100 MW power plant together with a potential partner from China.

Pento also said it was planning to build a 170 km railway to link the coal mines to consumers as well as the sea port for export purposes.

In July 2005, Penton acquired 72.86 percent of the issued share capital of PT Suskes Lancar Sentosa (SLS), a company that owns 70 percent of the issued equity in three coal companies PT Anugerah Jambi Coalindo, PT Bakti Sarolangun Sejahtera and PT Sinar Anugerah Sukses, for US$3 million.

Penton also owed a deferred payment of US$ 1.7 million to contractors of SLS, which is payable upon achieving a production target of at least 30,000 tons of coal per month.

UEC is a wholly-owned subsidiary of the United Engineers Limited (UEL). UEL, through its 66 percent ownership in United Power Corporation Pte Ltd, co-owns a 700 MW power plant in China. (Robert)