Pan Asia Corp receives key ‘foreign owned company status’ in Indonesia

Pan Asia Corporation (ASX: PZC) has received official foreign owned company status for the Transcoal Minergy Coal Project (TCM Project) in Indonesia for the conversion to a PMA company.

Locally a PMA company is known as “Penanaman Modal Asing”, with the approval received from the Capital Investment Coordinating Board.

What the approval signifies is that Pan Asia can now move forward with plans for the incoming of substantial foreign investment to development the project – with the company actively engaged with parties interested in participating in development.

Alan Hopkins, chief executive officer for Pan Asia, commented on the positive news: “PMA status is another box ticked as we move to the development stage for our flagship TCM Project.

“It is very timely as we are now in discussions with parties interested in participating in the development of our project.”

Exploration is also continuing at speed at the TCM Project, with Pan Asia recently finishing additional drilling in the Northern area of the concession, with results to flow through to the market shortly.

Pan Asia has a 75 percent interest in the project, with local partners 25 percent.

Potential re-rating in Pan Asia

Recently Hopkins spoke exclusively to Proactive Investors from Jakarta on the next big re-rating event for investors to look out for, and said that the company will look for the best deal with a potential offtake or development partner to advance the project to the next level.

“When we do that, that’s when we’ll lock in the value into the project and then into the company. As long as we do that deal on good terms, which we think we’ll be able to do, then that’s the big re-rating event for us.”

Resource increase in the short term likely

The TCM Project hosts high calorific value thermal coal 6,200 kcal/ kilogram (AR), and currently has a 128 million tonne JORC Resource. Importantly 50 million tonnes is Measured, with 38 million tonnes Indicated.

This resource has the potential to increase rapidly in the short term, with Pan Asia already outlining a target of over 200 million tonnes.

A resource update is forecast to be delivered next month.

Number one thermal coal exporting region in the world

What is significant for Pan Asia, when compared to other developing coal projects around the world, is that the company is operating in one of the best thermal coal exporting regions in the world.

To put this in perspective, the cost to develop a coal mine in Indonesia is around $56 per tonne, with these metrics very favourable when compared to Canada (US$90 per tonne), South Africa (US$99 per tonne) and even Australia (US$141 per tonne).

http://www.proactiveinvestors.com.au/companies/news/31232/pan-asia-corporation-receives-key-foreign-owned-company-status-in-indonesia-31232.html

 

Category: ResourceAsia