South East Asia Resources has started production of semi-soft coking coal from its PT Pola Andhika Realtor (PAR) mine site in East Kalimantan and is about to complete the first shipment. The shipment is encompassed within an offtake agreement through its Singapore-based unit, South East Asia Energy Resources Pte Ltd (SEAER).

The coal is being supplied under long-term agreements to the newly-commissioned Viet Trung Coke Plant in North Vietnam owned by CoalMiDanka Ltd, which is part of Vietnam’s Danka Minerals Group.

The soft coking coal mine is near Balikpapan and is under development by SEAER. The coal comes from multi-seam truck and excavator operations providing both semi-soft coking and additional high-grade thermal coal. The coal is trucked via an internal haul road 36km to the barge loading port of Telen where it is processed and loaded onto 6000-tonne barges for the 30km transshipment to the anchorage of Adang Bay.

The coal will be loaded in 12,000-tonne batches to Vietnamese-chartered Handimax ships using gear and grab for direct shipment via the South China Sea to Cai Lan Port, Quang Ninh Province in North Vietnam. The supply contract is on an FOB-ship basis only.

The production is being undertaken by mining contractor Debbia Mining under the mine and project management of United Mining Indonesia with Indonesian and Australian site management and engineering support. The first shipment of 12,000 tonnes of coal is scheduled to be loaded for Vietnam on November 25, with continued monthly shipments thereafter.

Following the inspection a further understanding was reached with CoalMiDanka for expanding long-term coal offtake from Indonesia extending to future thermal coal. The company is also in discussions with Danka Minerals and subsidiary CoalMiDanka on additional cooperation in other projects.

South East Asia Resources is a resources exploration company focused on finding, proving and extracting value from world-class resource projects in South East Asia. The company is building a portfolio with its cornerstone project Malala Molybdenum Project in the ToliToli Province in Indonesia’s North Sulawesi province, and interests in the Penajam East Coal Project in Penajam Regency of East Kalimantan.

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