Straits Asia to expand Indonesian coal portfolio

Singapore-Exchange ?listed mining firm Straits Asia Resources Limited announced on Thursday it had signed MoU to acquire certain assets and contracts in relation to a thermal coal mining business located in East Kalimantan from Vital Century Investment, Pacific Communication Corp and Mitsui Matsushima International Pty Ltd.

Straits Asia and the Vendors will now proceed, on an exclusive basis, to finalize all conditions and documentation, and satisfy all applicable conditions precedent, to complete the transaction, with completion expected to occur prior to the end of 2007, the company said.

Straits Asia intends to finance the transaction through a combination of debt and equity, it said.

Macquarie Securities (Asia) Pte Limited is acting as financial advisor to Straits Asia on the transaction.

Straits Asia, which runs Sebuku coal mine in South Kaliamntan, is a unit of Australian mining firm Straits Resources Limited. (alex)