KAL Energy’s coal mining operation in Indonesia is strategically located in proximity to China where 600 coal fired electricity stations are anticipated to be built in the next two decades.
China’s two largest coal producers are China Shenhua Energy Co. and Coal Energy is the country’s second-largest listed coal producer. While China is the world’s biggest coal producer it is also the world’s biggest coal consumer, with the resource accounting for about two-thirds of its total primary energy consumption.
Analysts say they expect China will remain a net importer of coal for most of this year as domestic prices will likely stay firm.
The Chinese government has been stepping up its efforts to encourage imports of natural resources and discourage their export to meet growing domestic energy demand.
KAL Energy is already in discussions with end customers and strategic coal traders for their specific coal product. The current plan is to produce and ship 200k tonnes to these customers in the 2nd half of 2007, and to scale production to 5 Mt/yr within 4 years, and a long-term production rate of 15 Mt/yr.
Source: KAL Energy and Dow Jones Newswire
Contact Info
KAL Energy, Inc.
93-95 Gloucester Place
London, W1U 6JQ
United Kingdom
Phone: +44 20 7487 8426
Fax: +44 20 7691 9725 (direct)
Email:
a.caminschi@mininghouse.com
KAL Energy Inc. (OTCBB: KALG), through its wholly owned subsidiary Thatcher Mining Pte., has the rights to two coal concessions situated near the Mahakam River in North Eastern Kalimantan, Indonesia. This river is a main transportation system for transporting coal to nearby markets. Consulting Geologist, Jonathan O’Dell, has estimated that blocks 16 & 24 could contain over 192,000,000 tons of thermal coal. Today Indonesia is the leading exporter of thermal coal and export prices vary from $30.00 to $60.00 plus per ton. This region has been an active coal exporter since the 1990s, and in 2004 Indonesia passed Australia as the largest exporter of thermal coal. Governmental signing was achieved on Sep. 14th, 2006. Title & Ownership structure has been extensively reviewed by HHP, the in-country affiliate of Baker & McKenzie International.
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S&P GICS: 10102050
Sector: Basic Materials