Jakarta (Indonesia) Mar 18 (Business Wire India): MSE Earthstone Resources FZC, part of Earthstone Group, a diversified mining company, today announced the acquisition of 100 per cent economic rights for coal tenement extensively spread over 2,560 Hectares in the thermal coal resource region of Melabouh, Aceh, North Sumatra, Indonesia.
The Indonesian Department of Mining granted a three-year Kuasa Pertambangan (a mining right) license to PT Bara Bina Perkasa early this month. MSE Earthstone Resources FZC has acquired 100 per cent economic rights from PT Bara Bina Perkasa and has agreed to invest for exploration and exploitation of the tenement.
Integrated Coal Mining limited, a RPG Group company from India entered into an agreement with MSE Earthstone Resources FZC to jointly explore this tenement. RPG Group has an option to acquire up to 51% economic interest of the mine subject to satisfactory exploration of the tenement.
Commenting on the acquisition, Earthstone Group, Chairman and CEO Pankaj Shah said: "This acquisition is in line with our growth strategy of identifying and exploring high quality natural resources in order to meet the industry demand".
Earthstone conducted initial reconnaissance studies to identify outcrops, determine characteristics of the coal seam, collect samples and determine the logistics; initial results show immense potential for prospecting of high quality thermal coal. The proposed site has good road infrastructure with minimal effort required to expand.
Earthstone jointly with RPG Group plans to initiate detailed systematic surveys including geophysical studies, drilling and geological logging on the site by April 2009.
Earthstone Group is a diversified multinational Group with established presence in Mines and Minerals and developing interests in Energy, Roads, Airports, Ports, Rail Networks and other associated Infrastructure. Acting through its subsidiary companies the Group secured 100 per cent Economic Rights in Coal, Iron Ore, Lead Ore and Manganese Ore properties in Indonesia. We are actively pursuing opportunities in a number of Asian and African countries for Coking Coal, Uranium, Gold and Thermal Coal Mining.