OGL Puts on Hold Indonesian Operation

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Monday, 29 August 2011 16:48

Written by Hans GN

Theindonesiatoday.com - Overseas & General Limited (OGL), an Australia-listed mining company, announced on Monday (August 29) that its Indonesian operation will be on hold until the completion of the Australian coal assets acquisition.

"We are currently reviewing all the agreements with our local partner," it said, noting it ceased the trial mining operation in December 2010.

OGL Group is currently undergoing a major reorientation of its activities to focus on the mining industry with particular emphasis on coal exploration, development and mining in Australia and also Indonesia.

As part of this process the Group will be undertaking a capital rising of a sufficient size to allow the group to proceed with its objectives.

"Given the fact that the Australian coal assets acquisition has not yet been completed, the related capital raising has not yet commenced, the Indonesian coal venture is currently on hold and the hardwood plantations are not yet generating any income," the Group said.

OGL has in May 2010 commenced the drilling at Samboja, East Kalimantan mining site. The drilling started after the company secured Contract to Mine from CV Rahmat Nikmat, the Indonesian owner of a mining lease at Samboja.

OGL through its majority own Indonesian unit PT OGL Indotrade Resources, has entered into joint operating agreement with the owners of PT Pagar Benua Borneo covering 10,000 hectares in West Kutai district of East Kalimantan. In the area, OGL has found some very high calorie level of coal, some potentially used for coking coal. An initial payment has been made to secure the contract and a royalty be paid to the owner through the life of the project. (hans@theindonesiatoday.com)

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