A subsidiary of Singapore-listed Noble Group has purchased a 5.43% stake in Pan Asia Corporation and has also been appointed as the strategic advisor to PT Transcoal Minergy (PT TCM), which is developing a high CV thermal coal project in South Kalimantan.
Global diversified natural resources supply manager Noble Resources International will subscribe for 7 million shares for $490,000 with top up rights to maintain the holding.
Pan Asia chief executive officer Alan Hopkins says, “We are very pleased to further strengthen the ties between the companies. We have a shared motivation to expedite the advancement of production at TCM, and to pursue additional growth opportunities. In particular, Noble has a strong understanding of and presence in the Indonesian coal industry and can provide Pan Asia with invaluable support in delivering the TCM project.”
Noble will also appoint a non-executive director to the Pan Asia Board. The company’s expertise in the international coal market as a supply manager of energy products, minerals, metals and ores will assist with providing strategic marketing advice regarding coal produced at the South Kalimantan concession.
The strategic advisory role will also see Noble assist with TCM coal sales agreements and capital-raising to finance the development of the project.
Pan Asia is taking steps to become a long-term supplier of key energy resources into the expanding Asian markets and has offices in Jakarta, Perth and Sydney. It holds a 75% stake in PT TCM which is scheduling first production at its South Kalimantan coal project in 2014.