Adaro in talks to acquire BEP

IDX-listed firm PT Adaro Energy, one of the country?s major coal miners, is currently in talks to acquire East Kalimantan coal miner group PT Bhakti Energi Persada (BEP), Kontan daily reported on Friday.

Adaro?s spokesman Andre J. Mamuaya confirmed the talks with BEP. He said that Adaro would use its own funds to finance the acquisition.

BEP?s president director Jeffrey Mulyono did not denied or confirmed the news. He only said that BEP welcome any investor wanting to become strategic partner.

In January 2010, Jeffrey Mulyono told Petromindo.Com that the company was seeking partners to develop its coal mines in East Kalimantan. Many have approached the firm to become partners, but it had yet to find a suitable partner, he said without giving further detail.

He also said BEP will spend around US$15-40 million in capital expenditure (capex) this year to develop its mines.

BEP has four subsidiaries, namely Persada Multi Bara (PMB), Bumi Murau Coal (BMC), Telen Eco Coal (TEC) and Pesona Khatulistiwa Nusantara (PKN), which have total low-ranked coal reserves of 5.7 billion tons. PKN is now producing, while the other three are still in pre-production stage.

BEP is controlled by businessman TP Rachmat, who is also a controlling shareholder at IDX-listed coal giant PT. Adaro Energy, and his long-time business partner Benny Subianto. (denny)