EAST KALIMANTAN: Jakarta Globe were told that a subsidiary of Singapore-listed miner Sakari Resources, Separi Energi, has signed an agreement to buy six coal mining concessions in East Kalimantan, covering an area of more than 29,000 hectares.
Sakari paid an initial, refundable deposit of $2 million to carry out exploration and due diligence reviews of the assets, which are controlled by four local firms, it said in a statement on Monday.
The companies are Sepiak Jaya Kaltim, Cahaya Baru Kaltim, Bunga Jadi Lestari and Anugerah Pancaran Bulan.
Sakari will conduct exploration of the assets sometime this month with the preliminary results expected to be concluded before the end of the year.
Should the exploration and due diligence review be deemed satisfactory and Sakari decide to acquire an interest in all the areas, the company will pay an additional $2 million in cash and an equity component capped at $60 million.
Sakari, however, said that the book value, net tangible asset value and open market value of the companies had not yet been determined and they have not yet commenced business.
Sakari produced 10.7 metric tons of coal from its two mining assets in Kalimantan last year. Its largest asset is the Sebuku coal mine, which is located in a small island off South Kalimantan.
The mine is said to contain the largest deposits of high-quality bituminous coal is Southeast Asia, with massive reserves that currently stands at over 900 million tons.
Sakari also controls the Jembayan thermal coal mine in East Kalimantan with massive coal reserves estimated to be at least 142 million tons.