The Integra concession is estimated to have reserves of 8 million tons of high thermal output coal and has significant quantities of surface and outcrop coal.
The company is able to access the coal with relatively low infrastructure and production costs.
Borneo Resource Investments CEO Nils Ollquist said independent analysis of coal samples collected from the Integra concession showed extremely high thermal values of up to 7,400 BTU, in addition to relatively low ash and sulphur content.
"We believe that the project can create significant positive cash flow immediately, as thermal coal of this calorific output attracts a premium price of well over $100 per tone," Ollquist added.
Borneo has accumulated 4,000 tons of initial quantity and is negotiating one year contract to supply 50,000 tons of coal to India based purchaser.
The company intends to pursue monetization of its coal assets in short term to develop a sustainable cash flow.
Borneo has medium term goals to capitalize on the underlying value of its concession reserves through joint ventures, partial sale, farm out and revenue sharing agreements, and construction of in situ power generation facilities with international energy and trading groups.
US based Borneo through its wholly-owned subsidiary Interich International obtains mining concessions to explore and develop coal reserves.
