Borneo Resource Investments Ltd. commences surface coal harvesting at its PT integra prima coal concession
Friday, Jun 29, 2012
BOTHELL, Wash., June 28, 2012 /PRNewswire/ -- Borneo Resource Investments Ltd. (OTCPK: BRNE), ("The Company"), commenced operations "harvesting" surface coal from its PT Integra Prima Coal concession which has estimated reserves of 8 million tonnes of high thermal output coal.
The Company has accumulated an initial quantity of 4,000 tonnes and is currently negotiating a one year supply contract, with an India-based purchaser, to provide regular monthly shipments totaling 50,000 tonnes.
Nils Ollquist, Chairman and CEO of The Company said, "We believe that our concession portfolio contains some of the most attractive reserves of high-quality thermal coal in Indonesia. It has always been our intention to develop a profitable coal trading business to be operated in parallel with the building of our coal assets by acquisition."
The Company stated that the Integra concession has significant quantities of surface and "outcrop" coal, and that it will be able to access the coal with relatively low infrastructure and production costs.
Mr. Ollquist continued, "Independent analysis of coal samples collected from the Integra concession showed extremely high thermal values of up to 7,400 BTU, in addition to relatively low ash and sulphur content. We believe that the project can create significant positive cash flow immediately, as thermal coal of this calorific output attracts a premium price of well over $100 per tonne."
Mr. Ollquist concluded: "In the short term we will continue to pursue the monetization of our coal assets as prudently and economically as possible, so as to develop a sustainable cash flow. In the medium term, our goal of capitalizing on the underlying value of our concession reserves will be pursued through negotiation of joint ventures, partial sale, "farm out" and revenue sharing agreements, and construction of "in situ" power generation facilities with major international energy and trading groups. Given that the long term price projections are positive in Asia, driven primarily by the rapid industrialization of China and India and their need to address the problem of persistent and chronic power shortages, the value of this platform will continue to increase."
About Borneo Resource Investments Ltd. (BRNE).
Borneo Resource Investments Ltd., and through its wholly-owned subsidiary Interich International Limited, obtains mining concessions to explore and develop coal reserves primarily in the East Kalimantan and West Papua regions of the Republic of Indonesia.
SOURCE Borneo Resource Investments Ltd.