Bina Puri to acquire Indonesian power plant and mining

By Adianto P. Simamora

Kuala Lumpur-based construction firm Bina Puri Holding Bhd unveiled plan to acquire a hydro-power plant in Pulau Bangka and entering coal mining business in Kalimantan as its current core business was suffering from low profit margins.

?We are in talks with parties to acquire a hydro-power plant with substantial capacity, and we are moving on to a more concrete stage already,? The company's group Managing Director, Tan Sri Tee Hock Seng said as quoted by StarBiz , adding that the hydro-power plant would complement the existing plants.

The company took control of a number of power plants in 2010 by acquiring an 80 percent stake in Indonesia-based power plant owner and operator PT Megapower Makmur via Bina Puri Power Sdn Bhd, and had spent close to US$5 million in investment.

Bina Puri currently has five diesel power plants in Pulau Bangka with a combined capacity of 10 megawatt.

Tee said the company was now in preliminary discussions with an Indonesian partner to form a joint venture to mine coal in Kalimantan.

?We will be engaging Chinese mining contractors for the project as they are well known for their mining expertise. I like to do mining, and it has been my forte over the last 30 years. I need to help steer Bina Puri to have more recurring income and new businesses,? he said.

Editing by David Mustakim