Berau Coal tender process starts today

The tender process for a 60 percent stake in East Kalimantan-based coal mining company PT Berau Coal begins today with bidders starting due diligence that is expected to be completed in the second week of February, according to a source.

The source said that the bidders were expected to submit their final bids between February and March. The winner is expected to be announced at the end of March or early April.

No comment yet from Berau Coal, or PT United Tractors Indonesia, the owner of the 60 percent stake to be sold to raise cash to help repay debt.

Reports earlier said that there seven bidders including four multinationals had been short-listed for the tender process. Local bidder included the state-owned coal miner PT Tambang Batubara Bukit Asam.

PT Armadian Tritunggal which owns a 30 percent stake in Berau Coal had also expressed its interest to acquire UT?s stake.

Another shareholder in Berau Coal is Japan trading powerhouse Nissho Iwai, holding 10 percent.

Berau Col operates a coalmine in Berau Regenecy in East Kalimantan, with last year?s output reaching at 6.7 million tons. (Amoros)