Atlas Resources to float in IDX next month

Coal miner group PT Atlas Resources will float 25 percent of its total shares to boost its coal output in Indonesia-listed stock exchange (IDX) by the end of next month, the company said in announcement on Tuesday.

Atlas Resources has 18 coal subsidiaries, comprising 5 hubs in Berau regency, East Kalimantan (PT Berau Bara Energi , PT Kalbara Energi Pratama, PT Citra Global Artha); West Kutai regency (PT Diva Kencana Borneo); Muba in Musi Bayuasin and Musi Rawas regencies (PT Gorby Putra Utama, PT Gorby Energy, PT Gorby Global Energy, PT Banyan Koalindo Lestari, PT Cipta Wanadana); Ogan Komering Ulu regency in South Sumatra (PT Hanson Energy , PT Anugerah Energi): and Papua ( PT Karya Manunggal, Papua Inti Energi).

Atlas Resources will boost its coal output to 4 million tonnes (MT) of coal next year, from this year?s target of 1.5 million tonnes. At present, the company has produced the coal from PT Berau Bara Energi and PT Diva Kencana Borneo and PT Hanson Energy in Martapura mine.

The company has total JORC measured resources totalling 330.7 million tonnes with proven reserve 76.3 million tonnes and probable reserves of 7.2 million tonnes.

Atlas Resources has clinched off-take agreement with international trader Noble since August 2010 and acts as marketing agent. Noble has an option to buy 10.1% share of Atlas Resources? stakeholder Abdi Andre for US$29.9 million.

Abdi Andre is one of the majority stakeholders in Atlas Resources with 38.3 percent stake.

The company and Noble has revised its agreement, whereby Noble will act as marketing agent for 75 percent of the total production from PT Berau Bara Energi, PT Citra Global Artha, PT Kalbara Energi Pratama, PT Gorby Putra Utama and PT Diva Kencana Borneo.

The company is planning to start commercial production from PT Gorby Putra Utama by fourth quarter of this year. It plans to build 100-km haul road and port facility to facilitate coal production from Muba hub. The company has secured preliminary license to build those projects.

The projects are expected to be completed in 2013 and with the completion of the project coal output from Muba hub can be increased to 5.1 million tonnes per year in 2013 and around 9.25 million tonnes per year in the following years. Pending completion of the project, the company will use public road to transport the coal to port in Jambi province. (denny)