Having completed exploration in 1999 since 1994, MGM has actually found approximate 40 million MT of open-out minable reserve with the excellent quality (low ash, low sulphur, high fluidity and high CV) for the coke blending in steel mill usage.
Itochu Corporation, one of biggest trading houses in Japan specialised in marketing both thermal and coking coal, has entered into agreements recently with MGM to acquire 20% of share in MGM through its subsidiary company Itochu Coal Resources Australia. Itochu will turn obtain the exclusive sales agency for the Japanese market.
MGM is in the process of converting the company status from Indonesian Domestic investment company (PMDN) into foreign investment company (PMA). The MGM coking project has obtained the Construction Permit and suitable fund to put up the necessary infrastructure for the mine. MGM is planning to start commercial production of Semi-Soft Coking coal from 2003 with production of 1 million MT gradually increasing to 2 million MT annually. At least 50% annual production will be sold to Japan through Itochu Corporation.
