News

May 07, 2008

Coal Is The New Black Gold For Kalimantan Gold

By Rob Davies

Kalimantan Gold has just signed a contract to explore for coal in Indonesia. Given that the name of the company suggests it’s looking for gold and not coal, Minews wondered if the company might be changing its name. Chief executive Ray Connelly responded by saying that coal is now the new black gold and that he’s very happy with a company name that encompasses that and its original target.

Part of the deal he’s struck with diversified Indonesian giant the Mesra Group, is that the coal interests will be spun off into a separately listed company on an established resource exchange at the right time. That way both companies will get an increase in the value of the capital they will have invested in the project. Doing such an ingenious deal with the promise of greater rewards later, has allowed Mr Connelly to participate in coal exploration in Kalimantan, on probably the most...