May/June 2013 - The ASIA Miner

Indonesia
Jatenergy to invest in new coal project
FOLLOWING completion of due diligence on
the Geronggang Coal Project, Jatenergy Limited
has decided to invest in the 183 hectare
project in Kotabaru regency of South
Kalimantan. Should this project proceed to
production as expected, it will bring to three
the total number of Jatenergy’s actively producing
Indonesian coal mines.
In early December, 2012, Jatenergy signed
an exclusive MOU with PT Saijaan Prima Coal
(SPC) in relation to this property. The three
month MOU has seen Jatenergy conduct
economic, geological and legal due diligence.
Following successful completion of this process,
Jatenergy is now looking to invest up to
$650,000 to develop the project, and is actively
seeking an investor to fund the other half
of the project cost. Jatenergy’s fully-owned Indonesian
subsidiary, PT Barata Energy, has
also signed two additional exclusive MOUs
with SPC and PT Platinum Prima Iron (PPI), for
the coal and iron ore mining ventures.
One of the two new MOUs covers a 198 hectare
property on the island of Sebuku, which lies
off the southeast tip of Borneo, just south of the
Geronggang Coal Project area. The property is
the subject of a production IUP and is prospective
for coal and iron ore. The MOU with SPC for
the Sebuku project is effective for three months,
during which time Jatenergy will conduct economic,
geological and legal due diligence.
The second of the two new MOUs covers
a 7254 hectare concession hosting a large laterite
iron ore deposit. The project is currently
owned by PT PPI, an 80%-owned subsidiary
of SPC. The MOU for this project is effective
for three months, during which time Jatenergy
will conduct economic, geological
and legal due diligence.
In making its investment in the Geronggang
Coal Project, Jatenergy is looking to
apply the same staged and profit-sharing
investment model it has successfully used
for its Jongkang I and II mines. Under this
model, Jatenergy and its investment partner
would make an initial 50% investment upon
signing a binding agreement with SPC. Four
to six weeks later and after presenting a
mine plan for production, a final payment
would be made.
Jatenergy is investing in the Geronggang Coal Project
in South Kalimantan and is considering investing in a
nearby iron project.
44 | ASIA Miner | May/June 2013