Realm will not acquire an additional 24% in the project for payments totalling $US17 million and Realm and PT SMAA will remain with 51% and 49% holdings respectively.
In addition, Realm and PT SMAA have reaffirmed their intention to cooperatively build a larger coal business in the Katingan and adjacent regencies by formalising a cooperating agreement.
“We are pleased that, together with our partners, we have reaffirmed our agreement to cooperatively expand our coal business in the region,” Realm chairman Richard Rossiter said.
“The focus will now shift to financing and development and completion of the permitting phase, following imminent release of the feasibility study results.”
Katingan Ria is Realm’s first coal project and the company announced last month that it had established maiden JORC-compliant reserves of 29 million tons.
The company said the Central Kalimantan project was shaping up as a simple, open cut operation that would supply low ash and low sulfur coal ideally suited for modern Indian and Chinese power generation.
Mining and logistics options studies are advanced, paving the way for the completion of the feasibility study for a potential 10-plus year, 2.5 million ton per annum coal operation.
