WestSide signs coal seam gas accord with Bumi

Queensland coal seam gas (CSG) company WestSide Corporation Ltd said on Monday that it had signed a heads of agreement with Indonesia 's largest coal mining company PT Bumi Resources Tbk to establish a joint venture to develop coal seam gas (CSG).

 

The joint venture will evaluate and develop CSG prospects in the concession of Bumi’s South Kalimantan coal unit PT Arutmin , WestSide said in statement.

 

“The Arutmin mines generally target surface outcropping coal seams with shallow declines in a number of relatively narrow permit areas,” WestSide said.

 

Arutmin operates four separate mine sites in South Kalimantan including Satui, Senakin, Batulicin and Mulia, measuring a total of 70,000ha. The Mulia mine produces mainly sub-bituminous coal and the other areas predominately bituminous coal.

 

WestSide expects to hold a 50% interest in the Arutmin CSG operations, with each joint venturer contributing equally to development and production costs.

 

In May 2007, WestSide also signed a joint venture agreement to develop a similar project in Bumi’s subsidiary Kaltim Prima Coal (KPC) in East Kalimantan .

 

“The Project Definition Study for KPC is underway. Advanced Resources International (ARI), a US-based advisor which has prior CSG assessment experience in Indonesia , has been engaged to lead the study,” WestSide added.

 

Bumi holds 27.5 percent of WestSide's shares. (denny)