Singapore-listed Noble Group has acquired a 5.34% equity stake in the Australian company developing the first large-scale underground coal mine in Indonesia in recent years in a move widely seen as a vote of confidence in the fledgling sector.
Australia listed Pan Asia said in a filing to the Australian Securities Exchange Thursday that Noble will subscribe to 7 million shares or 5.34% of Pan Asia in an agreement worth around A$490,000 ($508,500). Pan Asia has a 75% equity interest in Transcoal Minergy, which is developing a high calorific value underground thermal coal mine in South Kalimantan province that is scheduled to commence production by the end of the year.
Pan Asia previously announced TCM's JORC resource has been estimated at 177 million mt, and that the project will produce coal with a calorific value of 6,200 kcal/kg gross as received, total moisture of 8.5% as received and ash content of 14% air dried basis.
Underground mining is not common in Indonesia, where most production is from open pits.
