United Tractors, Indika Look to Add Coal Miners

By webadmin on 10:11 pm Feb 20, 2012
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Inneke Lady & Ivan Dasa Saputra

The hunt for coal mines in Indonesia remains intense, with a tractor company and an energy firm the latest to advance plans to make acquisitions.

United Tractors, the heavy equipment distribution unit of Astra International, and Indika Energy, the nation’s third-largest coal producer, both plan to acquire coal miners this year.

Djoko Pranoto, president director of United Tractors, said on Monday that the company aimed to complete the acquisition of two miners in Kalimantan in the second half of this year. It will spend $700 million on the acquisitions.

“As a first step, we will have to complete the acquisition of a brown field miner in Central Kalimantan,” Djoko said, referring to projects that have already had some mining activity.

United is aiming for miners of high-quality coal, around 6,000 kilocalories per kilogram.

The company is now conducting a due diligence assessment on two coal miners in Central and East Kalimantan, Djoko said. He did not name them.

The news comes as Indika Energy revealed it was set to buy an 85 percent stake in coal company Multi Tambangjaya Utama for $132 million. Indika signed the share purchase and distribution agreements last week.

“The acquisition will be considered complete after it gains approval from the authorities,” Arsjad Rasjid, president director of Indika, said in a statement over the weekend. The authorities whose approval is sought include the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) and the Indonesia Stock Exchange.

Multi Tambangjaya has a production capacity of 4.8 million tons per year. It has a coal concession area covering 25,000 hectares in Central Kalimantan.

Recently, cement company Semen Gresik announced it had set aside Rp 500 billion to set up a subsidiary tasked with securing adequate coal to support the company’s main operations.

Shares in United Tractor rose 0.3 percent to Rp 29,700 on Monday. The stock has risen 14 percent so far this year. Shares in Indika were up 4.1 percent to Rp 2,550. They have risen 20 percent so far this year.

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