AKR adds fund to develop its C. Kalimantan coal mine

IDX-listed logistics and fuel supply firm PT AKR Corporindo, Tbk. and its partner PT Pundi Prima Investama have signed an agreement to increase basic capital to Rp 500 billion from an initial Rp 3 billion at its coal mine unit PT Anugerah Karya Raya (AKR Coal) in Muara Teweh regency, Central Kalimantan.

Under the deal, the amount of money that will be paid to AKR Coal will rise to Rp 139.8 billion from only Rp 800 million. After the deal, AKR holds 94.63% stake in AKR Coal with the remaining held by PT Pundi.

AKR Coal is slated to start production from the mine within the next few weeks with production expected to reach up to 2 million tonnes next year.

The company has started construction of a coal terminal in Buntok Baru, along the Barito River, which will be utilized as shipment point for coal from the region.

The company operates the mine through its subsidiary PT Bumi Karunia Pertiwi. The company has also appointed PT Karunia Bumi Khatulistiwa (KBK) to carry out mining activities. KBK is now in the final phase of constructing production support facility such as haul road.

AKR Coal controls five coal concessions in Barito regency with total area of 24,000 hectares. (denny)