indonesian coal production next month

I know we have all been giving followme a hard time about his excitement towards CAG, myself included, but a well respected poster young_trader over on ASF has uncovered a very interesting part of the coal acquisition announcement.

it looks like CAG will bring this new acquisition into production next month with contractors already lined up.

this indonesian coal project looks like it has been sold as a turn key project with production already ready to commence.

below is the quote from the acquisition announcement


"MCR intends to fund all capital expenditure out of the proceeds of production. Under the approvals obtained in relation to the exploitation area, MCR must commence operations on or before 15 July 2008. In this regard, MCR has offers in place from more than one contractor. These offers will be reviewed and assessed by MCR in reference to costs and facilities given by the contractors including their experience and track record. MCR has advised that, if operations have not commenced by 15 July 2008, the relevant authorities can cancel the authorisation to proceed to mining (although an extension of time may also be possible). MCR does not believe there is any risk of operations not commencing by this date."


at a tiny market cap and with coal production commencing very shortly, CAG could indeed provide excellent leverage to the rampaging coal sector.