UK mining firm acquires E. Kalimantan Sendawar coal project
Wednesday, April 5 2006 - 09:03 AM WIB
UK firm Churchill Mining PLC announced Wednesday it had acquired an 80 percent stake in the Sendawar coal project in East Kalimantan from PT Indonesia Coal Development (ICD) for ?2.75 million or about US$4.82 million.
The Sendawar project, which is located approximately 50km from the Mahakam River, covers more than 1,000 square kilometers of prospective coal ground.
The coal project lies in close proximity to two operating open-cut mines: Thai miner Banpu?s Trubaindo mine and the privately-owned Gunung Bayan mine.
Churchill also said it had raised ?5.25 million via share placement for the acquisition, which is expected to take place on April 10, 2006.
Churchill said the proceeds will be used to map and sample coal outcrops and begin drilling at those areas already identified as immediately prospective. (robert)