Egco to sell RI coal shares

Egco to sell RI coal shares

SINGAPORE (Dow Jones): Thai independent power producer Electricity Generating PCL plans to complete the sale of its 70 percent stake in Egco Mining Co. this week, the Bangkok Post said on its Web site Wednesday.

Egco Mining owns rights to a coal concession in Kalimantan, Indonesia.

"It's the company's policy to focus on electricity production and distribution and get rid of non-core businesses," Egco President Sitthiporn Ratanophas said.

Negotiations are under way with four buyers, all stakeholders in Egco Mining. Energo Corp., AED Holding, JB Energy and SCF Finance & Securities hold a combined 20 percent stake in the company, the report said.

Siam Cement PCL, which holds a 10 percent share, will not increase its stake as it considers coal a non-core business, according to the Bangkok Post.

Egco had previously offered its interest in Egco Mining to other mining companies but received no response, citing poor coal quality, the paper said.

In 1999, Egco Mining, in collaboration with Montan Consulting of Germany, identified a 400 million ton deposit of low-sulfur coal in the concession, media reports said last year.