APAC ’s proposed subsidiary, PT Batubara has entered into a Work Agreement for Coal Mining Enterprises (CCOW) with the Government of Indonesia to explore, mine and extract coal from an area of approximately 68,360 ha in East Kalimantan, Indonesia.
Potential Investors can rest assured that APAC has sound backing from Magnus Energy which intends to remain as a principle investor in APAC and will retain a medium to long-term holding in the interest of nurturing its investment.
The 30-year CCOW (commencing on the date that mining operations commence) has a relatively low stripping ratio of around six.
The concession has the approval and support of the Minister of Mines in Jakarta , and national concessions such as this one override local concessions approved by local district councils in Indonesia . Support on a federal level means that the mine is also open to foreign ownership and investment.
The concession contains JORC compliant resources of approximately 5.1 million tonnes of coal. Of this resource, 1.4 million tonnes is inferred and 3.7 million tonnes are indicated. The resource has been established over an area of 890 ha (to a depth of 100m), which represents approximately 1.3% of the total concession .
Production will begin after the fundraising phase. There are in-situ coal off-takers who may buy the coal as soon as production commences.
The PT Batubara Concession is located in an area with established infrastructure including access roads, stock-pile areas and a loading jetty. The convenience of the location translates into significant savings on the cost of coal production.
APAC ’s medium to long term corporate strategy for growth following the listing on ASX and establishment of mining operations includes, inter alia, other acquisitions of producing mines with track records of profitability.
To ensure the Company attracts the best professionals to realise our corporate objectives and visions, APAC is committed to developing a strong, quality and competent management team under the guidance of the Board of Directors whose members have the relevant industry experience and come from varied backgrounds.