2 coal producers ready to supply coal to Kodeco

Two domestic coal producers, namely PT Arutmin Indonesia and PT Bahari Cakrawala Sebuku, have expressed their readiness to supply coal for cement maker PT Indo Kodeco Cement (IKC).

IKC general affairs and personnel department head Andy Sutikno said his company had signed sales and purchase contracts with the two coal producers.

Andy noted that IKC used all coal supplies from the two companies to run its cement plant in Batu Tulis, South Kalimantan.

"So, we never buy coal from other parties, except from the two suppliers," Andy told Bisnis on Monday.

IKC is a subsidiary of PT Indocement Investama, which owns 72.09 percent stake at the company. Other shareholders include Korean Development Company Ltd. (KDC) which owns 24.91 percent stake and Marubeni Corp. 3 percent.

IKC's cement plant, which will have production capacity of 2.4 million tons of cement clinker per annum, has not been in operation. Its construction costs the investors US$350 million.

Recently, creditors of Indocement Tunggal Prakarsa hinted that they would restructure Indocement's $1 billion debt provided that Indocement was willing to take over IKC. Both Indocement and IKC shared the same creditors. (*)