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Panax Geothermal pursues brownfield geothermal opportunity in Sumatra

Hot spring, Sumatra/ Indonesia
Alexander Richter 3 Jun 2010

Australian Panax Geothermal Ltd. is pursuing brownfield geothermal opportunity in Sumatra and completes an Indonesia-wide MOU with Bakrie Power.

Reported from Indonesia and Australia, Australian “Panax Geothermal Ltd. is pursuing brownfield geothermal opportunity in Sumatra and completes an Indonesia-wide MOU with Bakrie Power.

Panax Geothermal Ltd. announced that good progress has been made in advancing its geothermal interests in Indonesia. During meetings last week in Jakarta, Panax entered into a Memorandum of Understanding (MOU) with PT Bakrie Power (BP), regarding joint exploration and development of geothermal resources and reserves across the whole of Indonesia.

PT Bakrie Power is a wholly-owned subsidiary of Bakrie Group of Companies, led by PT Bakrie & Brothers Tbk (Bakrie Group). Under the terms of this MOU, Panax will be the operator with a 51% interest, with the remaining equity being held by BP. The initial focus of this collaboration will be on the supply of base-load geothermal power to PT Dairi Prima’s underground zinc/lead mine in Northern Sumatra.

The above mentioned MOU will partially replace the earlier announced MOU with PT Dairi Prima, with the exception of Panax’s right to directly supply the Dairi Prima mine with geothermal power, i.e. BP will replace Dairi Prima in funding the geothermal power development costs and share in the future power supply to the mine.”

Source: Reuters