Centralink wins bid to purchase Indocoal

JAKARTA (JP): PT Centralink Wisesa, in a joint venture with Thai coal mining firm Banpu Plc, has won the bid to purchase Indocoal, a group of four coal mining companies in Sumatra and Kalimantan.

The Indonesian Bank Restructuring Agency (IBRA) said PT Centralink and its partner would take over the Indocoal stake from PT Holdiko for US$450 million.

"Centralink submitted the highest bid at the tender and we are satisfied with the result," Dasa Sutanto, a director of the agency's asset management unit, said.

Indocal is one of more than 100 companies transferred by the Salim Group to IBRA as part of the settlement of the business group's debts to the government.

The companies are operated and managed by PT Holdiko Perkasa, which was established by IBRA and the Salim Group in early 1999 as part of the settlement.

Several other local companies, including state-owned tin mining firm PT Timah, took part in the bidding for Indocoal, which operates two coal producing companies -- PT Indominco Mandiri and PT Kitadin Corp. -- and two coal exploration companies -- PT Trubaindo Coal Mining and PT Barasentosa Lestari.

Centralink recently entered into an agreement with Banpu Minerals (Singapore) Pte Ltd, a subsidiary of Thailand's Banpu Plc, whose core business is the production and marketing of coal and minerals.

As well as providing technical and management support, Banpu's BMS unit will lend about $54 million to Centralink as part of the Indocoal deal.

Banpu said its existing coal business in Jorong, South Kalimantan, was performing well, with a production capacity of three million tonnes of coal per day.

"(The Indocoal deal) will lead to the continued development of the coal business, which may decrease the risk of engaging in the coal business in Indonesia," the company said in a statement.

Banpu currently produces and distributes 3.8 million tons of coal per year. (hen)