A Jade official told The Straits Times last night that it had all the necessary permits and the all-clear to mine the ore.

Its statement was a bid to kill off damaging market rumours that had been swirling about the mine - Jade's main asset and a focus of much recent share market activity.

The talk is that Jade does not have mining rights for the West Sumatra colliery, which is said to contain as much as US$1.03 billion (S$1.41 billion) worth of coal.

The rumours were partly based on talk that the Indonesian authorities had purportedly issued documents stating that the mine was in a nature reserve and that Jade did not have the rights to extract the ore.

But a Jade spokesman said last night: 'We've confirmed that all permits are in hand.'

Last month, newly appointed group president Sam Chong Keen had said: 'Jade has obtained the necessary...permits and licences.

'Various surveillance, site studies and topographical work have also been completed and we have an experienced team on-site.'

He added that his company wanted to 'concentrate all (its) efforts and resources on coal mining to tap the vast potential of this business'.

Jade shares have been heavily traded in recent months following the aborted takeover launched by former president and key shareholder Anthony Soh.

Dr Soh's bid to buy out Jade failed in April, triggering a Commercial Affairs Department probe. Later that same month, he stepped down as group president.

Mr Sam, who used to be the managing director of the former Comfort Group and a well-known corporate troubleshooter, stepped in as executive director and group president.

Experts say the heavy trade in Jade shares is due mainly to the injection of the coal mine business, which was announced in April. West Sumatra Governor Gumawan Fauzi was present in Singapore when Jade announced the deal.

A Jones Lang LaSalle valuation report cited by Jade in April said the Mount Galugua mine has reserves of US$1.03 billion. Jade announced then that it might start exporting ore as early as July.

Last month, it said that three new investors, including former Informatics chief executive officer Ong Boon Kheng, had invested $9.63 million in Jade, with at least $5.4 million to be used to fund the mine project.

The firm also said yesterday that it had terminated land sale agreements in Johor Baru that could have netted it $10 million.

Instead, it made $965,000 from the termination. Its shares closed flat at 11 cents with 12.04 million units traded.

alfoo@sph.com.sg

VENTURING INTO COAL MINING

'Jade has obtained the necessary... permits and licences. Various surveillance, site studies and topographical work have also been completed and we have an experienced team on-site.'
MR SAM CHONG KEEN, Jade's group president, talking about the company's new direction last month