Hashim, Sukanto acquire Swabara

JP/afs

JAKARTA (JP): Two leading Indonesian leading businessmen, Hashim Djojohadikusumo (second left) and Sukanto Tanoto (second right), have combined to buy a controlling interest in Swabara Group from Australia's Washington H. Soul Pattinson Ltd and its subsidiary New Hope Corporation Ltd.

The acquisition was signed yesterday by the chairman of Tirtamas group, Hashim, the chairman of Raja Garuda Mas group, Sukanto, the chairman of New Hope Corp, James S. Millner (left) and the chairman of Swabara group Greame Robertson (right).

They did not say how much the stake cost.

Swabara, which was set up in 1985, operates in mining, ports, infrastructure and power generation.

Swabara holds interests in PT Adaro Indonesia, a major open pit coal mine in South Kalimantan with annual production of 11 million tons, and PT Multi Harapan Utama, an open pit coal mine in East Kalimantan with annual production of two million tons.

Swabara also has an interest in the Paiton Energy Company, which is building a 1,230 Megawatt coal-fired power station in East Java.

Swabara's subsidiary, PT Bulk Terminal Indonesia, is building a major deep water bulk port project on the Laut island southeast of Kalimantan.

The port, which is scheduled to be finished in August, will be one the largest bulk ports in Southeast Asia.

Swabara's new shareholders plan to increase production at Adaro's coal mine in South Kalimantan to 20 million tons a year by 2000, making it one of the world's biggest coal mines.

Adaro will supply the Paiton power station.

"We are set to develop Swabara into Asia's largest coal mining and energy corporation," Hashim said.

New Hope will remain a Swabara partner through its 50 percent stake in Adaro's coal mine and Bulk Terminal's port project.

New Hope will also liaise with Swabara to develop coal mining in Australia. (jsk)