The acquisition of the coal tenements will increase Altura’s current tenure holdings in Indonesia from 7661 hectares to 17,000ha.

The transaction will enable the Altura-controlled Tabalong coal project joint venture to acquire an 80% stake in each of the projects.

Upon the completion of the acquisition, Altura’s Tabalong coal project will comprise of five mining permits.

Altura has a 70% interest in Tabalong, while local mining contractor Unitras Jaya Investama holds the remaining 30% stake.

The company is targeting production to begin this year at 500,000 tons per annum with a long-term plan to ramp up to 1.5 million tons per annnm.