White Energy extends partnership with Tri Mitra Bayan
Tuesday, May 1 2012 - 12:41 PM WIB
Australia listed White Energy has recently stated that its representatives in Indonesia will continue working with PT Tri Mitra Bayan (TMB) to identify and explore coal deposits in Indonesia, exptending the MOU signed by both parties in June 2011.
Due diligence investigations on the three properties which were previously short-listed were concluded during the quarter without success, although one of the projects is still being considered by White Energy and TMB.
The company is currently working with TMB on a number of other potential projects identified over the past 2 months.
Dispute with Bayan
As previously reported, the shareholders of PT Kaltim Supacoal (KSC), White Energy and Bayan are currently in dispute over matters relating to the Tabang coal upgrading plant, located at Bayan's Tabang mine in East Kalimantan.
On 5 April 2012, the Supreme Court of Western Australia made interim freezing orders in respect of Bayan's 56% shareholding in Kangaroo Resources Limited, a publicly listed Australian company. On 18 April 2012, following a further hearing in this matter, the Court extended the freezing orders indefinitely.
The orders will remain in place unless and until there is a further order made by the Court. There will be a further hearing in the matter but the date for that hearing has not been set.
As a result of the above dispute, KSC suspended operations at the Tabang plant in late November 2011. The Tabang site has since been placed on care and maintenance program, with around 15 staff remaining on site who are responsible for managing the site. They are being supported by a small number of administrative staff in KSC's Balikpapan office. All other staff were terminated in late December 2011.
At the time of suspension of operations at Tabang, the various plant modification works being undertaken at site were over 95% complete.
White Energy believes that it took all steps to fulfill its joint venture obligations and that the failure of the Joint Venture is due to Bayan's failure to supply coal and provide funding to KSC and its purported termination of the Joint Venture Deed.
Editing by Audy Zandri