Feb 24, 2012

Bayan ceases JV tie with White Energy

Coal mining company PT Bayan Resources Tbk (BYAN) finally determined to cease a joint venture agreement in PT Kaltim Supacoal (KSC) with its Australian partners White Energy Company Limited and BCBC Singapore Pte Ltd.
Director Jenny Quantero at Bayan Resources, in an official statement today, said Bayan, that is controlled by Dato' Low Tuck Kwong, has officially sent a letter of the termination agreement to those partners on February 21 2012.
Bayan, through its lawyer in Singapore, has counter the allegation filed by BCBC Pte Ltd and proposed a counterclaim on BCBC Pte Ltd and White Energy in Singapore's court on February 21.
In November last year, Australian clean coal developer White Energy has involved a dispute with Bayan in KSC. White Energy declined to buy out its Indonesian partner.
White Energy, as quoted by Reuters, said it has told its partner, Bayan Resources, it is in breach of their joint venture, including its role as coal supplier, and given it 7 days to resolve the breach.
White Energy holds 51% of KSC with the remainder held by Bayan, which owns the Tabang coal mine in East Kalimantan that supplies their 1 million-ton-a-year coal upgrading plant.
The two entered talks last week on how to rescue the project after Bayan said it no longer wanted to supply coal to the upgrading plant because it could get a better price selling directly into the export market.
Bayan offered to sell its stake in the project for around US$45 million as a condition for continuing coal supply, but White Energy turned the offer down, saying it did not make sense to pay that much.
Instead, White said it would pursue its legal and other commercial options.
"White Energy's Board and management team are clearly disappointed with the timing of Bayan's recent actions," Chief Executive Brian Flannery said in a statement.
He said the company remains confident that there is strong demand from large coal companies in Indonesia and elsewhere to partner with White Energy to commercialize its clean coal technology.

Disclosure: No position at the stock mentioned above.

Print This Article

No comments: