SouthGobi ups stake in E. Kalimantan coal project
Friday, September 5 2008 - 10:56 PM WIB
Vancouver-based mining firm SouthGobi Energy Resources Ltd. announced Friday it has increased ownership in the Mamahak Coal Project in East Kalimantan from 56% to 85%.
SouthGobi will pay Score Resources US$13.2 million, comprised of $8 million cash and 320,000 common shares .
PT Multi Mamahak Batubara (PT MMB), a new SouthGobi Energy subsidiary based in Jakarta, will be the operating company responsible for the development of the Mamahak Coal Project and other coal opportunities within the country, the company said.
The company said that it had secured approval from local government that will allow for the expedited development of coal surface mining in the APL block within the southern portion of the concession. Two potential mining areas have been outlined within the concession with plan to start mining in he first quarter of 2009. (alex)