BHP plans to acquire Berau Coal

Australian global resources giant BHP Billiton is planning to acquire shares of local coal mining firm PT Berau Coal from the Jakarta-listed heavy equipment maker PT United Tractors, which is seeking some US$100 million in cash to repay debt maturing in December, according to a source.

The source said that BHP was very interested to buy the East Kalimantan-based Berau Coal because the latter company was quite healthy and had strong prospect ahead.

In the first half of this year, Berau Coal booked a net profit of Rp 600 billion (US$1=Rp 10,200), which is almost a125 percent jump from the same period last year.

Separately, Berau coal president Jeffrey Mulyono confirmed that BHP had expressed its interest in his company. He told Petromindo.com that all parties interested to purchase Berau are expected to submit their bids on Nov. 10. He did not provide details.

The source said that in the hands of BHP, Berau Coal could become a high profile coal mining firm because BHP is known as the world?s largest coal producer and trader.

He pointed out that even though BHP had recently completed its obligation to divest 80 percent ownership in coal mining firm PT Arutmin, the former still control the marketing of most of the latter?s coal product.

Berau Coal operates a coalmine in Berau regency, with this years' production targeted at 6.5 million tons.

United Tractors holds 60-percent stake in PT Berau Coal, while another local company, PT Amadian Tritunggal and Japanese trading powerhouse Nissho Iwai hold 30 percent and 10 percent, respectively.(Amoros/Godang)