LOS ANGELES and JAKARTA, Indonesia, Jan. 10, 2012 /PRNewswire/ -- PHI Group, Inc., (OTCQB: PHIE), (Pinksheets: PHIE) a company focused on energy and natural resources, announced today that it has signed a Letter of Intent with PT. HBP, an Indonesian company, to jointly operate a producing coal mine with operation and production license (IUP Operasi Produksi) in South Kalimantan, Indonesia.

According to the terms, PHI Group and PT. HBP will sign a definitive Operation Agreement to jointly produce and process thermal coal from an already producing mine with approximately 5,500,000 metric tonnes of mineable coal deposits of calorific value range 5,900-6,500 Kcal/Kg in an area of 80.6 hectares located in Jombang, Satui, Tanah Bumbu, South Kalimantan Province, Indonesia. Both parties expect to finalize the terms and conditions of the Joint Operation Agreement in January 2012 or shortly thereafter following additional satisfactory due diligence review by the company.

This transaction is part of PHI Group's plan to cooperate with currently producing mines to generate current revenues for the company through joint operation and coal trading. Subject to operational and financial conditions, the company expects the joint operation with HBP to produce about 50,000 metric tonnes of coal a month and have a significant positive impact on the company's financial results.

Henry Fahman, Chairman of PHI Group, said, "While we continue to accumulate energy and natural resource assets in Southeast Asia, partner with coal-fired power plants and introduce advanced clean coal combustion technology to existing and new plants, we believe our activities in the area of joint operation and coal trading with already producing mines will enable the company to generate current revenues and profitability, which will also help our overall long-term objectives."

Djoni Ismail, President and authorized representative of HBP, stated, "We are very excited about this collaboration with PHI Group and believe it will be good for both parties."

About PT. HBP

PT. HBP is an Indonesian company with a production license (IUP Operasi Produksi) to operate and produce thermal coal from a concession of 80.6 hectares located in Jombang, Satui, Tanah Bumbu, South Kalimantan Province, Indonesia. This concession contains approximately 5,500,000 metric tonnes of mineable coal deposits with calorific value ranging from 5,900 to 6,050 Kcal/Kg.

About PHI Group

PHI Group (OTCQB: PHIE.PK) (Pinksheets: PHIE.PK) focuses on energy and natural resources in Southeast Asia and engages in real estate development and M&A advisory and consulting services.  

The company has signed an agreement with a U.S. company to provide a coal-combustion-to-steam-energy system that requires 50% less coal to produce the same energy as presently combusted in traditional coal-fired power plants.

This system has no NOx or Sox. Moreover, while 99.9% of the mercury is trapped for commercialization, H2O is recycled, and 99.9999% of CO2 is captured for sequestration or commercialization. The system can be installed at approximately 70% of the cost of today's coal combustion plants based on a comparative system with existing steam turbines and does not require the installation of large, expensive, and comparatively ineffective gas emission scrubbers as presently required on coal-fired power plants.  The energy efficiency of this innovative coal-combustion-to-steam-energy system is clearly the best (100%), compared to that of existing systems such as traditional Pulverized Coal Combustion (38%), Fluidized Bed Combustion (40%), and Integrated Gasification Combined Cycle (51%). The ease and relatively inexpensive installation of this system, with virtually no pollutants released, will make coal the least expensive source of clean energy in the world. 

Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

Contact:

Henry Fahman

+1-714-843-5455

info@phiglobal.com

 

 

 

SOURCE PHI Group, Inc.

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