Strike in talks with Indian consortia to jointly develop Berau coal project
Looks for more Kalimantan coal acquisition
Thursday, October 1 2009 - 02:04 AM WIB
The company said in an Annual Report released Thursday the consortia, which identity was undisclosed, would fund capital expenditure to bring the mine into production and also would buy the remaining available coal from the mine.
The company also reported that it had also held discussion with an Australian investment bank over the possibility of getting project financing.
Strike also announced in August it had signed a letter of intent with an undisclosed major Chinese mining and trading group to acquire significant stake in the company.
The company also said it has been in discussion in investors in Singapore with a view to list its Berau Coal project in East Kalimantan on the Singapore Stock Exchange as a means of raising capital to develop the project.
Strike has recently completed feasibility study which focused on the development of open cut mining operations with production scaling up to 1.5MTPA to peak production 3MTPA. The company said in June 2009 that commercial operations could be achieved in the second half of 2010.
According to the FS, Strike would need US$19.5 million to develop the project.
The company said it was also considering acquiring more coal mines in Kalimantan to complement Berau coal project. (alex)