Straits hopes E. Kalimantan concession to start production early 2015
Wednesday, June 25 2014 - 05:32 AM WIB
SGX-listed Straits Corporation Pte Ltd plans to start developing its newly acquired coal concession in Kutai Kertanegara Regency, East Kalimantan, once all the necessary permits have been obtained.
Straits expects first production from the concession to commence early next year.
The holding company of IDX-listed PT Indo Straits Tbk (PTIS), an integrated marine and logistic service provider, is currently processing the required permits, such as the borrow and use permit from the Ministry of Forestry.
"The IUP (mining permit) holder of the coal concession is PT Bumi Alam Raya, a subsidiary of PT Geobara Indonesia," Strait Corp's Group Executive Chairman & CEO Richard Ong said to Petromindo.com.
He said that Straits has completed the acquisition of Geobrata Indonesia, but did not disclose the value of the acquisition.
Ong said that the coal concession already has JORC standard report with 100 million tons of coal reserve and calorific value of 4,200 kcal/kg (GAR). He added that the coal reserve has low sulfur content of 0.1 percent and 35 percent of moisture content.
He added that the development of coal concession is part of the company's long term target to create an integrated mining business with the PT Indo Straits Tbk.
Editing by Reiner Simanjuntak