(EnergyAsia, November 12 2012, Monday) — US-based Yinfu Gold Corp said it has agreed to acquire a 51% interest in Singapore-based Hitric Resources (S) Pte Ltd which owns 80% rights of a coal mine in Tanah Bumbu in Indonesia’s South Kalimantan province.

According to Yinfu, Hitric Resources was granted a seven-year exploration licence over a 1,116-hectare site in February 2010. The licence is being upgraded into a full production licence for 15 years.

With the conclusion of exploration and mine design, the mine is due to start up in March 2013 upon issuance of the production licence.

The company expects the mine to produce 150,000 metric tons of high grade thermal coal in its first year, earning revenue of more than US$13.5 million before interest and tax of US$4.5 million.

Yinfu said this target is achievable because the mine is already well served by infrastructure including roads and at least five ports, along with integrated crushing and conveyor loading facilities.

It expects revenues and production volume to double as operations along with shipment efficiencies gain traction.

Tsap Wai Ping, Yinfu’s CEO, said:

“We are very pleased to have acquired the Kalimantan coal mine to add to our asset base and diversify our resource revenue streams. We have existing coal buyers from power plants in China which we will supply via long term supply contracts. We believe that this acquisition will produce excellent revenues for Yinfu.”

Yinfu Gold Corp is a mineral exploration and mining company incorporated in the state of Wyoming.