Stellar invests in Sumatra coal project
Friday, January 10 2014 - 01:31 AM WIB
London-listed Stellar Resources Plc said it has signed a binding term sheet to acquire an initial 20 percent shareholding in Boletus Resources Limited, which has signed commercial terms to develop the high quality coal at the Bengkulu coal project on the Indonesian island of Sumatra.
Stellar will acquire the 20 percent shares in Boletus, a special purpose company for developing the Bengkulu coal project, by paying $400,000 towards the start-up costs of the Indonesian operations, the company said on Thursday.
Stellar has the right, but not the obligation, to acquire a further 5 percent of Boletus by funding another $500,000 and a further 4% by funding another $400,000. Boletus on January 9 signed binding agreements with PT Bumi Arma Sentosa (BAS), the 100 percent owner of the Bengkulu coal project, that secures a joint co-operation agreement to mine develop, mine and export the coal with immediate effect.
Boletus expects mining operations at Bengkulu to start next month with first scheduled coal expected to be available for export through the nearby Bengkulu coal loading terminal early in the second quarter of 2014.
Stellar Resources executive chairman David Lenigas said: "The company will now be working closely with Boletus to bring the Bengkulu coal project into production by early spring.?
"The aim is to have final mine designs and production schedules completed over the next few weeks, where drilling has already identified 5 million tons of high quality open pittable export coal, with earth moving equipment expected to be operational at Bengkulu by the month's end,? he added.
Editing by Reiner Simanjuntak