London: Privately held Indonesian diverse group PT. OSO International and Indian trader Knowledge Infrastructure have formed a joint venture to develop thermal coalmines in Kalimantan, Indonesia, an OSO spokesman said.
Under the terms of the joint venture, called Orb Energy, Knowledge will have exclusive marketing rights to 1 million tonnes a month of bituminous coal when the mines reach full output, the OSO spokesman said.
Knowledge officials confirmed the joint venture has been signed but declined to give further details.
Jakarta-registered Orb Energy, will develop the mining concessions held by PT Total Orbit Prestasi, a subsidiary of PT OSO International.
Knowledge is investing in Orb, in which it will have roughly a 50% stake, with its Indonesian partner OSO, as required of traders exporting coal under the country’s mining laws.
Coal production from the two concessions will begin shortly at an initial rate of 100,000 tonnes per month, rising to 500,000 tonnes within 18 months, and possibly rising to 1 million tonnes a month in three years at full capacity, OSO said.
Orb aims to export its first coal in Q3 2011.