E&M Group acquires E&M Indonesia
Tuesday, January 22 2013 - 02:25 AM WIB
E&M Group, Inc. said that it has ratified a share exchange agreement with PT E&M Indonesia, an Indonesian mining company.
By acquiring PT E&M Indonesia, E&M Group will take the major step forward to become a major player in producing iron sand and zircon. ?We are looking forward to expanding our operations in Indonesia to grow our business and, furthermore, increasing our shareholder value,? the company said in a statement obtained Tuesday.
?The mining project E&M to proceed in the south offshore of Sukabumi in Indonesia is a very attractive and promising project along with current booming mining industry. Difficulties we had on developing untapped mining reserves due to hard work environment, lack of funds and technology can now be resolved with accumulation of our unique technology which enables to develop buried iron sand at minimal cost and great profit will be generated for not only for our company but also for mine owners. Our unique networks and relations with private business sectors in China will also take a big part in distribution of the iron sand,? explained Jooin Kim, E&M Group?s CEO.
?There is still a huge gap between the supply and demand for zircon and the price growing as a result. In fact, the price of zircon exited 2010 above $1,000 per ton and has gone up to $2,400 per ton in the third quarter of this year.
Credit Suisse, in their third quarter 2012 Commodities Quarterly, has predicted that the price of zircon will increase up to $3,500 per ton by the end of year 2013. Zircon mine, which will be our main projects, will become a major driver of the company?s future growths as zircon price is expected to grow,? he added.
Editing by Reiner Simanjuntak