PHI Energy has entered into an agreement to acquire coal mine assets from Indonesia-based PT Dian Anugrah Pratama.

The company will acquire an estimated mineable coal reserve of 10 million metric tons located in an area of approximately 423 hectares at Kecamatan Kapur IX in the Propinsi Sumatera Barat province of Indonesia.

Sample analysis data of the coal assets acquired show ash content of 10.66%, total sulfur 0.97%, total moisture 4.78%, volatile matter 46.36%, fixed carbon 41.43% and caloric value of 7,338 Kcal/kg.

PHI Energy chairman Allen Wu said that the acquisition of these coal assets is the first step of PHI’s plan to engage sizable sources of coal supply to meet the demand of potential long-term off-take contracts.