AKR to raise ownership in Jabal Nor to nearly 60%

PT AKR Corporindo (AKR) is finalizing the acquisition of 26 percent stake in PT Jabal Nor to increase the company?s ownership in the coal haul road and terminal operator in Tapin, South Kalimantan.

?We are in due-diligence and several other processes and expect to finish the acquisition in May or June,? AKR director Suresh Vembu said after his company?s annual and extraordinary meeting as quoted by The Jakarta Post.

Suresh said that AKR would increase its ownership in Jabal Nor by 26 percent to 59.4 percent from the current 33.5 percent. AKR, through its subsidiary PT Anugrah Karya Raya, acquired a 33.5 percent stake, or 48,575 shares, in Jabal Nor in a deal worth Rp 24.29 billion in December last year.

Jabal Nor, based in Tapin, South Kalimantan , provides infrastructure facilities for mining companies. The company is developing an integrated coal terminal providing hauling road and coal port terminal, which is expected to support coal mining activities in other areas in South Kalimantan : Banjar and Hulu Sungai Selatan.

Jabal Nor?s project will support AKR Corporindo?s coal mining operations because the local administration has prohibited coal miners and crude palm oil (CPO) producers from using public roads to transport their products.

AKR currently has mining rights locally known as Kuasa Pertambangan (KP) in five areas of 24,388 hectares in total in South Barito district, East Kalimantan .(*)