Strike Resources cancels E. Kalimantan coal project investment plan
Tuesday, August 1 2006 - 01:19 AM WIB
Australian mining firm Strike Resources said on Monday it had cancelled plan to invest in an East Kalimantan coal project after the owner refused to extend due diligence period.
The company said it sought for 3.5 moths extension from July 15, 2006 deadline. Strike had earlier signed an agreement with PT Kaltim Jaya Coal and PT Kaltim Jaya Mineral, the owner of the coal concession, to exclusively conduct general survey, explore for, exploit, mine and sell all coal in the concession, which is located near Balikpapan.
Sample analysis from the drilling conducted by Strike reveal higher than expected coal moisture in the samples, which prompted the company to ask for more time for further due diligence. (alex)