South East Asia Energy Resources (SEAE) has signed an agreement to manage, operate and market the coking coal from the PT PAR project in East Kalimantan. SEAE, formerly known as Victory West Metals, says the agreement with PT Debbia Mining gives it full ownership of all coal and production to existing jetty port facilities 34km from the mine.
The coking coal project comprises two coking coal-mining concessions over an area of 164 hectares which have production permits. There is no JORC-compliant resource estimate for the site at this stage.
The company has already mobilized staff to the site to complete further drilling, mine planning and preparation for commencing coal production this month. SEAE says all infrastructure, including the camp, mining equipment, haul road and processing crushing facilities, is in place for immediate mine production.
The coal quality has been sampled over the four coal seams at the project site by SEAE geologists and has been sent for independent analysis. The company is progressing negotiations with a Chinese steel mill regarding marketing the coal.
This project will run concurrently with the company’s development of its other East and South Kalimantan thermal coal projects.
SEAE was acquired by Victory West Metals in December last year as part of its strategy to extract value from world-class resources in South East Asia. The company is building a portfolio of projects including the flagship Malala molybdenum project in Indonesia’s North Sulawesi.
The acquisition was dependent upon SEAE raising $3 million to obtain the necessary business licences, with the deal completed with 330 million fully paid shares and 33 million Victory West Metals options and a cash payment of $750,000.