The first coal has been mined at one of Australian bio-fuel producer Jatenergy’s East Kalimantan mines, following a joint venture agreement with CV Karya Putra Bersama. The company says the start of production at Jongkang II mine is a landmark event, with 40,000 tonnes of coal already sold from the operation.
The joint venture arrangements for both the new investment and previously-announced Jongkang project require Jatenergy to provide working capital to earn 30% of the net margin for the coal, as well as to undertake full marketing and sales rights to the coal.
“We have now realized our strategic goal of diversifying our energy business. This week we will be mining coal in Indonesia for export to customers in Asia. This is due in no small part to the close working relationship we have formed with the owner of CV Karya Putra Bersama and its sister company, CV Wijaya Mulia,” says Jatenergy’s chief executive officer Phil Hodgson.
“We expect to follow-up in the near future with the development of our other two production projects at Jongkang and Atan Bara once production licences are granted.”
Both of the company’s other coal ventures in East Kalimantan are at an advanced stage of development. Jatenergy plans to use the cash flows from its mines to advance the evaluation and eventual development of its showcase Katingan coal project in Central Kalimantan, as well as continue to develop other coal opportunities in Indonesia and Australia.
Jatenergy produces high quality crude jatropha oil for the global airline industry from operations in Central Java, Indonesia. It recently diversified its energy portfolio from plant oil to include coal with the purchase of three mining projects in Indonesia’s Kalimantan coal region. It has also executed binding agreements to purchase eight coal exploration permits and permit applications in Queensland’s Bowen and Galilee basins.