Centralink wins bid to purchase Indocoal<\/p>\n
JAKARTA (JP): PT Centralink Wisesa, in a joint venture with
\nThai coal mining firm Banpu Plc, has won the bid to purchase
\nIndocoal, a group of four coal mining companies in Sumatra and
\nKalimantan.<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) said PT
\nCentralink and its partner would take over the Indocoal stake
\nfrom PT Holdiko for US$450 million.<\/p>\n
"Centralink submitted the highest bid at the tender and we are
\nsatisfied with the result," Dasa Sutanto, a director of the
\nagency's asset management unit, said.<\/p>\n
Indocal is one of more than 100 companies transferred by the
\nSalim Group to IBRA as part of the settlement of the business
\ngroup's debts to the government.<\/p>\n
The companies are operated and managed by PT Holdiko Perkasa,
\nwhich was established by IBRA and the Salim Group in early 1999
\nas part of the settlement.<\/p>\n
Several other local companies, including state-owned tin
\nmining firm PT Timah, took part in the bidding for Indocoal,
\nwhich operates two coal producing companies -- PT Indominco
\nMandiri and PT Kitadin Corp. -- and two coal exploration
\ncompanies -- PT Trubaindo Coal Mining and PT Barasentosa Lestari.<\/p>\n
Centralink recently entered into an agreement with Banpu
\nMinerals (Singapore) Pte Ltd, a subsidiary of Thailand's Banpu
\nPlc, whose core business is the production and marketing of coal
\nand minerals.<\/p>\n
As well as providing technical and management support, Banpu's
\nBMS unit will lend about $54 million to Centralink as part of the
\nIndocoal deal.<\/p>\n
Banpu said its existing coal business in Jorong, South
\nKalimantan, was performing well, with a production capacity of
\nthree million tonnes of coal per day.<\/p>\n
"(The Indocoal deal) will lead to the continued development
\nof the coal business, which may decrease the risk of engaging in
\nthe coal business in Indonesia," the company said in a statement.<\/p>\n
Banpu currently produces and distributes 3.8 million tons of
\ncoal per year. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/centralink-wins-bid-to-purchase-indocoal-1447893297",
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"sponsor": "Okusi Associates",
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