Tiaro acquires 20% of Anggana

By Peni Pedriawan

ASX-listed firm Tiaro Coal Limited (Tiaro), through its 55 percent interest in CM Basin Coal Holdings Limited (CCH), has reached agreement with Asia East International Limited to invest $1.6 million to secure 20% ownership of the Anggana Coal Project in East Kalimantan Province

The investment in the Anggana Coal Project is anticipated to produce capital returns from operating cash flows in the fiscal year of 2014. Tiaro will own 11 percent of the Anggana Coal Project through its 55 percent interest in CCH, the firm said in a statement on Monday.

Key points of the investment:
? Anggana Coal Project includes an established mine (Bara Naga open cut) and 3 coal concessions.
? Initial Investment amount of $1.1 million sourced from current cash reserves
? Additional $0.5 million investment staged over 14 months
? Experienced management team engaged to re-commence coal production in October 2013
? Target production of 50,000 tons per month
? Drilling & Modelling indicates >10 years production available
? Potential to expand resource across 3 Coal Concessions

Peter Meers, Executive Chairman stated, ?We are pleased that our strong relationship with CM Basin Coal Holdings Limited has realized this opportunity. This investment provides Tiaro with entry into mine production and to generate cashflow from its share of coal sales revenues.

?We are confident that the Anggana Coal Project and experienced management team will deliver the targeted production levels and that further exploration will significantly extend the resources and mine life,? he further said.

Tiaro, through its shareholding in CCH holds approximately 11 percent interest in the distributable profits of an estimated US$10 per ton generated by the Indonesian coal venture. ?During 2014 it is planned to increase production from the initial mine to around 1 million tons.

?Tiaro sees CCH as a launch vehicle to increase exposure in Indonesia, the world?s leading thermal coal producer,? Meers said.

Editing by Johannes Simbolon