SET-listed Energy Earth Plc (EARTH) has clarified the existence and fair value of two coal mine concessions in Indonesia, with total coal reserves at around 200 million tonnes.
The findings were conducted by EY Corporate Advisory Services, Energy Earth's business rehabilitation planner. EY hired ABNR Counsellors at Law, an Indonesian law firm, to examine and collect findings of the two coal mine concessions.
For the EHM coal mine, PT Emas Hitam Mulia is a company holding the rights for this mine. Shareholders of EHM are Arif Hari Sukarno, an Indonesian individual, and Lausanne Holdings Limited (LHL).
LHL holds 245 shares, or 49% of total shares in EHM, while Mr Arif holds 255 shares, or 51% of total shares.
LHL is registered in Samoa, with US$1 million worth of registered capital. Energy Earth Hong Kong Co Ltd (EEHK) holds 100% of LHL.
For the JAB coal mine, PT Jagad Artha Bara is a company holding the rights for this mine. Shareholders in JAB are Melyati, an Indonesian individual, and Atlantic Resources Holdings Limited (ARH).
ARH holds 245 shares, or 49% of total shares in JAB, while Mrs Melyati holds 255 shares, or 51% of total shares.
ARH is registered in the British Virgin Islands, with registered capital of $50,000. EEHK holds 100% of ARH.
"The examination of legal share ownership in EHM and JAB, which hold concessions for the [two] coal mines, [along with] information and documentation received from past management and a review by an international legal adviser have revealed the company and its subsidiaries have share ownership in EHM and JAB worth a combined 100%," said Energy Earth in its statement.
Earlier, the SEC ordered Energy Earth to clarify the truthfulness of its two Indonesian coal mines by November, and report the mines' fair value assessment by December.
Energy Earth was asked to conduct a special audit of advance payments of goods and reservation fees for product purchases in June 2017. Its auditor later submitted a special audit report in November 2017.
The report said Energy Earth used advance payment, reservation fees and other assets in exchange for rights in two Indonesian coal mines valued at $731 million (24 billion baht). But the SEC doubted the information and assumptions used to calculate the fair value.
