Diversified energy group PTT will pay Straits an upfront completion payment of $220 million and a performance payment of up to $115 million relating to reserve upgrades from mining at its Sebuku project in South Kalimantan.

Straits Bulk & Industrial holds a 47.1% stake in Singapore-listed Straits Asia Resources and coal exploration interests in Bruni and Madagascar.

Straits will also transfer the Yannarie solar salt project in Western Australia and a team of coal executives headed by Martin Purvis to Straits Bulk & Industrial as part of the transaction.

Settlement of the transaction is expected to be completed by the end of April.

Straits chief executive officer Milan Jerkovich told journalists during a teleconference yesterday afternoon that cash proceeds from the transaction would provide the company with the financial resources to pursue potential acquisition opportunities.

We’ll be looking at the metals and the precious metals sector, maybe the bulk commodities,” Jerkovich said.

“We do like the copper space. While we haven’t got anything specific in mind, copper and precious metals are probably the initial areas we will look at.”

The agreement requires Australia’s Foreign Investment Review Board (FIRB) approval.

PTT is engaged in oil and gas exploration and production, gas transmission and processing, energy trading and retail distribution segments, and accounts for nearly 30% of Thailand’s total market capitalisation on the Thailand Stock Exchange.

The news comes after Straits said late last year it would conduct a strategic review of its 47.1% stake in Straits Asia to assess whether to sell its stake in the Indonesian coal play after receiving interest from potential buyers.

Australia-listed Straits’ interest in Singapore-listed Straits Asia is worth $383 million.

Straits Asia owns two producing open cut coal mines – Sebuku in Southeast Kalimantan and Jembayan in East Kalimantan, Indonesia.