Ancora acquires coal mining company

Indonesian listed firm PT Ancora Indonesia Resources Tbk has reached an agreement to acquire a 50.6 percent stake in coal mining company PT Raja Kutai Baru Makmur for between Rp 100 billion (1 US$ = Rp9,000) and Rp 210 billion.

Ancora president director Dharma Djojonegoro said in Jakarta on Monday that the acquisition of the majority share in PT Raja Kutai was part of the company?s business diversification program.

He said that about 80 percent of the funds needed to finance the acquisition would come from the company?s own funds and the remaining 20 percent was expected to come from bank loans.

The agreement is expected to be finalized in the second quarter of 2011.

Raja Kutai operates a 8,500-hectare coal mine concession area in Kutai Kartanegara regency, East Kalimantan. Only about 550 hectares of the mining area have been opened up with total production of between 30,000 tonnes and 50,000 tonnes a month,

He said that Raja Kutai would be purchased from affiliated company PT Ancora Energy. ?The company will soon hold extraordinary shareholders meeting to ask for shareholders? approval,? he added. (giok)