Centralink wins bid to purchase Indocoal

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)