Berau Coal delays IPO plan until next year

PT Berau Coal, the country?s fifth largest coal producer, has delayed its initial public offering (IPO) plan until next year due to unfavorable conditions in the country?s capital market, Investor Daily reported on Monday.

The company?s president director Bob Kamandanu said in Jakarta late last week that the company would launch its IPO plan in the first quarter of next year instead of this year as originally scheduled.

He said that the company decided to delay the IPO plan due purely to the bearish condition in the local capital market.

Berau has secured contracts to develop there coal mine areas in East Kalimantan covering total concession areas of 118,000 hectares, of which about 40,000 hectares have begun production. Total proven reserves reach 200 million tons.

Bob said that the company planned to develop a new mining site in the province next year in order to meet the company?s higher production target.

Berau Coal has produced 7.3 million tons of coal from January to July 2008 out of the 13.5-14MT annual production target, Corporate Secretary Joko Setiono said on Aug. 12, adding that the company planned to increase production to 17MT next year. (*)