Ancora cancels mine acquisition plan
Friday, November 30 2012 - 02:43 AM WIB
IDX-listed coal miner PT Ancora Indonesia Resources has decided to cancel its plan to acquire a coal mine in East Kalimantan due the uncertainties in coal prices. ?We have cancelled the acquisition plan while closely monitoring the coal market situation,? Ancora?s President Director Dharma Djojonegoro told Petromindo.com, during the company?s public expose in Jakarta on Thursday.
Ancora had previously unveiled its plan to acquire a coal mine in East Kalimantan as part of the company?s expansion program in the coal mining sector.
Meanwhile, Ancora?s subsidiary Multi Nitrotama Kimia (MNK) expects that its production of ammonium nitrate, mainly used for mining explosives, would reach a total of 105,000 tons this year, while total sales are expected to reach 140,000 tons. Production during the first nine months of this year totaled 82,239 tons.
He said about 80 percent of MNK?s production are sold to four major mining companies under a long-term contract. ?The four buyers include three new clients Adaro, Pamapersada, Borneo Lumbung Energy and long-time client Freeport Indonesia,? Dharma said, adding that the contracts with the three new clients were valued US$200 million for between 3 and 5 years.
Editing by Dadan Wijaksana