The acquisition will allow Yinfu access to a coal mine situated in Tanah Bumbu, South Kalimantan, Indonesia. Hitric Resources owns 80% rights in the mine, where production is expected to begin in March 2013 after the license is issued.
Hitric Resources secured the exploration license covering 1,116ha in February last year.
During the first year, the Kalimantan mine is estimated to produce 150,000 metric tons of high grade thermal coal.
Yinfu CEO Tsap Wai Ping said that the acquisition of the Kalimantan coal mine will add to the company’s asset base and diversify resource revenue streams.
"We have existing coal buyers from power plants in China which we will supply via long term supply contracts. We believe that this acquisition will produce excellent revenues for Yinfu," Ping added.
