Atlas targets sales contract of 3 million tons a year

Coal mining company PT Atlas Resources Tbk expects to secure sales contracts of about 3 million tons a year from state electricity company PLN, Bisnis Indonesia reported on Friday.

The company?s commercial director Aulia Setiadi said in Jakarta on Thursday that coal would be supplied to PLN?s coal fired power plants including PLTU Tarahan Baru in South Sumatra, PLTU Teluk Naga in Banten, PLTU Pelabuhan Ratu in West Java and PLTU Pangkalan Susu in North Sumatra

?The contract for PLTU Tarahan Baru has been signed with annual supply of 600,000 tons for 20 years. We are still waiting for the signing of other contracts with PLN,? he said.

PT Hanson Energy, a subsidiary of Atlas Resources, would begin the coal supply to PLTU Tarahan Baru beginning October 1,? he said. Hanson was acquired by Atlas Resources recently from Dicky Tjokrosaputro, the son of businessman Benny Tjokrosaputro.

Atlas Resources and its subsidiries have five coal production hubs including Berau in Berau regency, East Kalimantan; Kubar in Kutai Barat regency, East Kalimantan, Muba in Musi Rawas and Musi Banyuasin regencies in South Sumatra, and in Papua. The company has estimated coal reserves of 84 million tons.

Atlas Resources has received an approval from the Capital Market and Financial Supervisory Agency (Bapepam) to sell 25 percent of its shares to the public on October 7. About 40 percent of the proceeds of the initial public offering will be used to finance infrastructure development.

PT Indopremier Securities Indonesia and PT UBS Securities Indonesia will jointly underwrite the company?s IPO. (*)