South East Asia starts coal production in East Kalimantan
Friday, November 1 2013 - 09:54 AM WIB
ASX-listed South East Asia Resources Limited announced on Friday that it has commenced production for the first shipment of semi soft coking coal from the PT Pola Andhika Realtor (PAR) mine site in East Kalimantan, as part of an off-take agreement through its wholly owned subsidiary Singapore based South East Asia Energy Resources Pte Ltd (SEAER).
The coal is being supplied under a long term agreements to the newly commissioned Viet Trung Coke Plant in North Vietnam owned by CoalMiDanka Limited, part of the Danka Minerals Group of Vietnam, the firm said in a statement filed with the Australian Stock Exchange.
PAR soft coking coal mine is located near Balikpapan and has been under development by SEAER. The coal is provided from a multi seam truck and excavator operations providing both semi soft coking coal and additional high-grade thermal coal. The coal is trucked by internal haul road some 36 km to the barge loading port of Telen where it is processed and loaded onto 6,000 ton barges for 30 km trans-shipment to anchorage of Adang Bay. The coal will be loaded in 12,000 ton batches to the Vietnamese chartered Handimax ships using gear and grab for direct shipment via South China Sea to the Port of Cai Lan, Quang Ninh Province North Vietnam. The supply contract is on an FOB ship basis only.
The production is being undertaken by mining contractor Debbia Mining under the mine and project management of United Mining Indonesia with Indonesian and Australian site management and engineering support. The first shipment of 12,000 tons of coal is scheduled to be loaded for Vietnam on Nov. 25, 2013, with continued monthly shipments thereafter.
To officiate the commencement of the collaboration between South East Asia Resources, Danka Minerals and subsidiary CoalMiDanka within Indonesia, the Chairman of Danka Minerals, Cong Su Nguyen, Director Thi kim Thanh Le and Technical Manager Van San Phan accompanied by SEAER executive Gary Williams and United Management T.L.Lie and Danny Josef inspected the mine site operations and port at PAR on Oct. 31, 2013. Following the inspection a further understanding was reached with CoalMiDanka for expanding long term coal off- take from Indonesia extending to future thermal coal.
The company said it is also in discussions with Danka Minerals and subsidiary CoalMiDanka on additional cooperation in other projects.
Editing by Johannes Simbolon