JADE Technologies on Monday said it would be abandoning its present mine in West Sumatra after a key geological report found much smaller reserves and poorer quality coal than expected.
The company said the mine, which had been valued nine months ago at over $1 billion, was found instead to contain less than a million metric tons of coal reserve. The mine was the company's sole operating business after it sold off its leadframe business in July.
What could be economically mined amounted to just 64,525 metric tons, the company said.
As well, the coal has high sulphur and ash content, and low calorific value, making it unattractive to buyers, while much of it is difficult to extract.
The company said it has signed a memorandum of understanding with Indonesian partners to explore and develop a coal mine in Riau. It said due dilligence should be completed in three or four months.
Source: Business Times
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