24 December 2014
311 - 313 Hay Street
SUBIACO WA 6008
P: + 61 8 6489 0600
F: + 61 8 9388 3701
ABN: 45 098 448 269
FAVOURABLE INDONESIAN GOVERNMENT REGULATION ON DIVESTMENT (GR 77/2014) - UNDERGROUND MINESx 70% Foreign ownership allowable for the life of mine
x Sell down to 70% to occur after 15 years
CEO Alan Hopkins: "After extensive campaigning & presentations in Indonesia about the long term benefits
& requirements of underground mining in Indonesia, it is great to see the Government formally recognising this in its latest mining regulation. This removes what was a significant hurdle to the necessary, long term foreign investment required for the development of long life, underground mining projects that can provide real benefit to all stakeholders in Indonesia".
Pan Asia Corporation Limited (ASX: PZC) ("the Company") is pleased to comment on the recent Indonesian Government regulation No 77 of 2014 ("GR77/2014") as it is of particular significance to Pan Asia's flagship Indonesian underground, high CV thermal coal project TCM (75% owned by PZC).
This regulation provides that a Production Operation involving underground mining now requires a maximum 30% divestment to local partners (i.e. 70% foreign ownership allowable).
The timing of divestment is as per the schedule below (Category 4 is underground mining):
Pan Asia has given many conference presentations and contributed to several leading magazine articles in Indonesia outlining the many benefits of digging deeper for resources in Indonesia. In particular we have outlined the special requirements needed to assist the development of such underground projects.
The timing of this is especially beneficial as we look to make significant progress on the TCM project in the coming year.
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About Pan AsiaPan Asia Corporation Limited aims to be a supplier of key energy resources into the expanding Asian markets. Our flagship TCM Project is a high CV thermal coal project in South Kalimantan. The Company seeks to build significant projects, de-risking them ready for development partners / offtake agreements with quality, life of mine partners.
For Further Information Contact: Alan Hopkins Jason CampbellChief Executive Officer Commercial Manager & Company Secretary
Pan Asia Corporation Limited Pan Asia Corporation Limited Tel: + 61 8 6489 0600 Tel: +61 8 6489 0600 info@panasiacorp.com.au
Pan Asia Corporation Limited
311 - 313 Hay Street SUBIACO WA 6008 P: + 61 8 6489 0600 F: + 61 8 9388 3701 ABN: 45 098 448 269 2
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