Tabalong Prima Resources to start production in 2017

By Thomas Sembiring

IDX-listed Golden Eagle Energy Tbk expects its newly acquired coal asset PT Tabalong Prima Resources to start production in early 2017.

?My target is (for Tabalong Prima Resources) to start production in early 2017,? Golden Eagle President Director Hendra Surya last week.

He added that preparations for development are being made toward the end of this year, so that construction can start next year. Hendra said that the development of the Tabalong asset will require about US$50 million in investment.

Golden Eagle through its indirect coal mining subsidiary PT Internasional Prima Coal (IPC) has recently signed a share transaction agreement to acquire 34.17 percent stake in coal miner PT Tabalong Prima Resources and 34.17 percent stake in Central Kalimantan coal port operator PT Mitra Hasrat Bersama (MHB) for a total transaction value of US$12.3 million.

Golden Eagle has an effective 39 percent stake in IPC through subsidiary PT Mega Raya Kusuma.

Tabalong Prima holds a 3,145-ha coal concession in Tabalong Regency, South Kalimantan, with JOR resources of 292 million tons, and reserves of 109 million tons.

Editing by Reiner Simanjuntak