Borneo Seeks to Acquire Thermal Coal Mining Rights in Kalimantan

Thu, 25 January, 2012

Borneo Resource Investments Ltd. (OTCPK: BRNE) said it seeks to acquire highly prospective thermal coal mining rights primarily in East Kalimantan, Indonesia, a highly-stable mining jurisdiction.

"Our objective is to add value through grassroots exploration and target refinement and then seek option or joint venture partners through to production," Borneo Chairman and CEO, Nils Ollquist commented.

Borneo's business model is that of a Project Generator and coal trader. The Project Generator model is particularly suited to the company's ongoing interest in the East Kalimantan province where Borneo has a wealth of intellectual capital and experience.

To add to cash flow and reduce the need for dilutive financings to fund its activities, Borneo engages actively in coal trading. Management seeks to identify and broker transactions between buyers and sellers, earning a profit as the intermediary.

The company currently has interests in two thermal coal exploration projects in East Kalimantan province with an estimated resource potential of 12-14 million metric tonnes, pending confirmation by geological studies.

The first is an 80% interest in PT Chaya Meratus Primecoal, an Indonesian company holding exclusive exploration and development rights for up to 6,000 hectares in the Tanjung Area Basin of south east Kalimantan.

The second is an exploration and production license covering 1,300 hectares in the East Kalimantan province through an agreement with the concession holder, PT Integra Prime Coal.

The company also has an extensive pipeline of additional projects under review for potential licensing or acquisition. East Kalimantan has the distinction of being at the epicenter of thermal coal mining and exports from Indonesia.

For context, most of the country's coal mines, including the largest, are located in East and South Kalimantan and two of the world's largest coal mining companies, BUMI and Adaro Resources operate in the region. Our concessions show extensive coal formations at the surface, and preliminary field work by our field geologists give us a high level of confidence in the resource estimates previously mentioned.

Currently our projects do not have JORC-compliant resource estimates, which is one of the standards used in the mining industry to assure shareholders and other stakeholders that the resources a company says they have are in fact present.

"We are actively engaged in securing JORC estimates for both of our concessions, and will do so for all additional concessions we acquire. This will significantly increase our company's attractiveness to institutional investors," Borneo said.

(sourced:Theindonesiatoday.com)

United Tractors to acquire two more mining sites in Kalimantan

Tuesday, 22 Nov 2011

The Jakarta Post reported that publicly listed heavy equipment distributor PT United Tractors, which also has coal mining interests, said is working to acquire two more mining sites in Kalimantan.

Mr Gidion Hasan director of finance and administration at United Tractors said that "One site is a Greenfield in Central Kalimantan and another site is a Brownfield in East Kalimantan."

He declined to reveal the two sites' sizes, saying the company had a confidentiality agreement. He said that "All I can say is that when the company carries out an acquisition, the site must have at least 30 million tonnes of coal reserves. However, it doesn't mean that each of those two sites to be acquired have 30 million tonnes of coal reserves."

Mr Gidion said that the company expected to finish the acquisition process early in 2012. He said that the company would likely maintain next year's capital expenditure at this year's figure of IDR 5 trillion, despite the acquisition plan.

He added that "We can't include spending on the acquisition plan in the capital expenditure because the plan may be accomplished or it may be unsuccessful."

He said that the company would finance the capital expenditure from internal cash, bank loans and the remaining funds from a rights issuance in June.

United Tractors still has IDR 1.77 trillion out of IDR 6.07 trillion gained in the rights issuance, which was the company's fourth. After paying IDR 45.83 billion for fees and expenses for the rights, United Tractors already used IDR 4.25 trillion by September 2011.

United Tractors, through its subsidiary PT Pamapersada Nusantara and PT Tuah Turangga Agung, currently has six concessions areas with a total of up to 369 million tonnes viable coal reserves in Kalimantan and Sumatra.

Mr Gidion said that United Tractors aimed to increase total reserves to up to 500 million tonnes as asked by its parent company, PT Astra International. The company reported coal sales at IDR 3.21 million tons as of September 2011.

Mining contracting division PT Pamapersada Nusantara reported coal production of 63.3 million tonnes by September 2011 and aimed to reach 84 million tonnes by the end of 2011.

United Tractors reported revenue of IDR 39.75 billion in the first nine months of 2011, increasing from IDR 27.81 billion in the same period last year. The company's net profit stood at IDR 4.35 billion by September 2011, rising 49% from IDR 2.96 billion year on year.

Its construction machinery division contributed about 50% of the total revenue, while the mining contracting division added 40% and coal mining 10%.

(Sourced TheJakartaPost)

$100 million for expansion into Kalimantan mining: AKR

Sat, 08October, 2011

The Jakarta Globe, one of the leading English news paper in Indonesia reported that, AKR Corporindo, a fuel and chemical distributor, has set aside $100 million to finance its expansion plans, including a push to acquire a coal-mining plant in Kalimantan, a top executive said.

The company’s president director, Haryanto Adikusumo, said on Wednesday that AKR would also spend some of the funds that it raised from a sale in a plantation company to build roads and coal terminals in Kalimantan.

“This diversification aims to meet growing demand in Indonesia, India and China,’’ Haryanto said.

Jakarta-based AKR is also building a coal terminal at Kalimantan’s Timbau Bay to ferry coal to overseas markets like China, the president director added.

AKR’s coal sales are forecast to increase to 1.2 million tons in 2012 from around 200,000 tons this year. AKR already has a coal-mining plant in the area that started commercial operations in the middle of this year.

Haryanto said that AKR targets revenue to increase to Rp 18 trillion ($2 billion) this year from Rp 12 trillion in 2010. Its first-half revenue rose 74 percent to Rp 9.06 trillion from a year earlier. In the same period, its net income more than doubled to Rp 266 billion from Rp 94 billion.

AKR’s coal expansion is in line with moves by other Indonesian companies, such as vehicle distributor Astra International, that have announced massive expansion plans.

The acquisition of coal mining companies is a frequent choice, to benefit from the rising price of coal in the global market. Astra, the largest automotive retailer in Indonesia, has allocated $1.5 billion for investment, which includes the purchase of a coal miner next year.

AKR raised Rp 2.2 trillion from the sale of its stake in Sorini Agro Asia to agribusiness giant Cargill this year. Sorini is one of the world’s leading producers and suppliers of sorbitol and operates seven manufacturing facilities that are located in East Java and Lampung.

Shares of AKR rose 6.45 percent to Rp 62,475 on the Indonesia Stock Exchange on Thursday. The shares have risen 43 percent this year.

sourced The Jakarta Globe, by Faisal Maliki Baskoro via coalspot

Mercator Lines To Invest RS 200-250 Crore on Coal Mine in INDONESIA

Thursday, 03 February 11
Economic Times reported that Mercator Lines, the HK Mittal-controlled shipping-to-mines major, will invest about 200-250 crore (US$ 43.825 - 54.781 million) in developing a coal mine in the Batuah region of Kalimantan province in Indonesia as part of its strategy to increase its presence in the high-margin mining industry.

The Mumbai-based company will invest via a JV with an Indonesian firm PT United Coal to develop the infrastructure for the mining project, while the ownership of the mine will continue to remain with the Indonesian company, said people familiar with the development.
When contacted, chairman H K Mittal said: "We already own four coal mines in Indonesia and are keen to build our ownership here." Total reserves in the Indonesian mines owned by Mercator Lines is about 70 million tonnes and the company plans to raise the total deposits to 100 million tonnes.

Ownership of coal mines in Indonesia and Australia has become a popular trend among the Indian and Chinese companies as they make a beeline to own these resources to feed an ever-growing demand for electricity in their domestic markets.
(1 INR = 0.0219129 USD http://www.xe.com) Source:Economic Times

Mr Verma signs MoU with province of Central Kalimantan in Indonesia

Wednesday, 26 Jan 2011
Mr CS Verma chairman of Steel Authority of India Limited as well as chairman of Indian Coal Videsh Limited signed a MoU with Governor of Central Kalimantan, Indonesia, HE Mr Agustin Teras Narang for development of mineral deposits, setting up of mineral processing facility, steel plant and required infrastructure in the province of Central Kalimantan.
The MoU was signed in the presence of president of Indonesia, HE Susilo Bambang Yudhoyono minister of Commerce & Industry Government of India, Mr Anand Sharma minister of state for external affairs. Mr E Ahamed and senior officials of the government of Indonesia.
The MoU envisages setting up of steel plant and mineral processing facility by optimization of large natural resources of Province of Central Kalimantan, such as coking and thermal coal, iron ore and other minerals for economic development of the Province and meeting the requirement of coal of the promoter companies of ICVL through mutual partnership. While the province will provide ICVL with necessary maps and licenses, ICVL will undertake preliminary survey and exploration activities to find the location and suitability of the quality of minerals and the size of reserves both for domestic use in Indonesia and for exports. A techno economic feasibility study will be undertaken jointly by the two institutions to explore construction and development of mineral processing facility and steel plant of suitable capacity in the region.

Speaking on the occasion, Mr HE Susilo Bambang Yudhoyono said that “Indonesia is rich in coal and other minerals, we can see great cooperation between India and Indonesia to explore opportunities for processing of iron ore and other minerals.” Mr Anand Sharma hailed the MoU as a ‘significant and defining relationship’ between the two institutions. He invited close cooperation in multilateral forum between India and Indonesia, the latter being ‘a growing hub of economic activity’. Underlining the importance of the deal.

Mr CS Verma said that “The MoU marks the beginning of our mutual intent for long term engagement with each other in the area of economic cooperation between both the institutions”.
ICVL is a Joint Venture of SAIL, Coal India Limited, Rashtriya Ispat Nigam Limited, NMDC Limited and NTPC Limited. The MoU is a vital step forward in capitalizing on the synergies between the two institutions for mutual benefit and growth. It is hoped that this will be a beginning of a long term collaboration for efficient execution of sustainable projects

Looking for coal investors

We are looking for coal investors
Here we have some chances in between we
have several mines where these mines have been produced.

Investors who wanted to investing directly into our mines are welcomes.
The advantage of Kalimantan coal are as below
* Surface Mining (surface mine), Low Sulfur,
Low Calorie to high Calorie range.
* High, Infrastucture of mining and it is very easy to transport
* The Land which is very much ready to explore is many so we can ask for a direct working order contract
* Our human resource is an empowered human resource beside the very professional Contractor.
Investors are requested please do contact us directly by phone or email to make an appointment, then we can discuss further more details. Then we’ll invite you to go direct, review the location in Kalimantan, seeing our entire readiness in doing this coal business.
Invest your capital in the coal business with us, let us closing attractive business cooperation, mutual benefit and always growing up, becoming one of the most successful coal company in Indonesia.
We now have 10 KP to in Take Over
* Location at in East Kalimantan and South Kalimantan.
* Obstetrical estimation of Coal between 5 – 10 Million Tons
* Exploration 3 yrs and can be lengthened a period of applying will [ used up/finished ]

* All mines have road connectivity
* Its ( the business Cooperation makes us : we receive Commision Fee and we try that us , get percentage in ownership of possibly only 5%

Contac us:
Lee Universal Enterprises
Importer-Export House
E-mail : Leeuniversal@gmail.com
Fax no.: +912942430499
Mobile :+919460352419
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