KAL Energy

Have you ever heard of KAL Energy Inc.? If you haven't, they are a mining company focused on Thermal Coal resources in Indonesia. Did you know that KAL Energy uses several of the Indonesian infrastructure elements to increase their business and maintain outstanding production rates? That's right! They are not only increasing rates of production, but also decreasing their unit costs when compare to other competitors, like Australia and South Africa. Also, the fact that KAL Energy is so close to the Mahakam and Kadang Pahu Rivers, even allows them to minimize cost to transport coal. You can learn more on the KAL Energy website today! The following is a Press Release about KAL Energy:

KAL Energy Uses Indonesian Infrastructure Advantages to Propel Business

A 2006 report by AME Mineral Economics states that Indonesia has become the world’s top thermal coal-producing area, taking a distinct lead over former top producers Australia and South Africa. While many in the industry might attribute the change to better mining techniques or higher quality product, the real answer lies within a somewhat surprising realm -- transportation.
“A low cost transportation infrastructure is essential to the economic exporting of coal,” states KAL Energy CEO Cameron Reynolds. “It’s one of the reasons Indonesia has jumped ahead in the market; other areas in the world have simply failed to, or can’t, overcome infrastructure constraints.”
KAL Energy’s mineral claims are located in East Kalimantan, Indonesia -- a region of active coal export since the 1980s. According to Reynolds, several infrastructure elements allow the region to maintain world-leading production rates. Among these are rapid rates of scale production, a minimization of front-loaded capital expenditures and diminished unit costs in comparison to competitors. The close proximity of Kal Energy’s mine properties to both the Mahakam and Kadang Pahu Rivers provide for low cost barge transport of coal.
“While other regions around the world are stuck at a certain level of production, places like Kalimantan, in Indonesia, continue to ramp their production massively,” says Reynolds. “It’s definitely a factor that I think investors are starting to realize.” Kal Energy has recently become a public company, trading under the symbol KALG.
KAL Energy has already secured the rights to an estimated geological resource of 192 million tons of thermal coal. This coal has been identified to have a very low sulphur and ash content which allows it to be utilized for more environmentally friendly electricity generation than many other Asian coals. They have made plans to produce and ship 200,000 tons of its product to end users in the latter half of 2007, with additional plans to scale production to 5 million tons per year within the next four years and 15 million tons per year on a long-term basis, after the successful completion of the exploration program and subsequent world class mining feasibility study. The company expects further long-term demand through Coal-to-Liquid (CTL) technologies.
“When you find an advantage, you exploit it in every way possible; and that’s exactly what we plan to do long into the future,” adds Reynolds.

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