Centralink wins bidding to purchase Indocoal stake
Monday, March 12 2001 - 02:30 PM WIB
PT Centralink Wisesa, in a joint venture with Thai Coal miner Banpu Plc, has won a bidding to take over the entire stake of Indocoal, a group of four coal-mining companies located in South Sumatra and East Kalimantan.
The Indonesian Bank Restructuring Agency (IBRA) said that PT Centralink and its partner would take over the Indocoal stake from PT Holdiko for US$450 million.
"Centralink submitted the highest bid at the tender and we are satisfied with the result," Dasa Sutanto, a director of the agency's Asset Management Unit.
Indocoal is part of more than 100 companies transferred by the Salim Group to IBRA as part of the settlement to cover the business group's debts to the government.
The companies are operated and managed by PT Holdiko Perkasa, which was established by IBRA and the Salim Group in early 1999 as part of the debt settlement.
Several other local companies including the state owned tin mining company PT Timah had joined the bidding for the entire stake of Indocoal, which operates two coal producing companies, PT Indominco Mandiri and PT Kitadin Corp, and two coal exploration companies, PT Trubaindo Coal Mining and PT Barasentosa Lestari.
Centralink recently entered into an agreement with Banpu Minerals (Singapore) Pte Ltd, a subsidiary of Thailand's Banpu Plc, whose core businesses are the production and marketing of coal and minerals and power.
As well as providing technical and management support, Banpu's BMS unit will lend about US$54 million to Centralink as part of the Indonesia deal.
Banpu said its existing coal business in Jorong in South Kalimantan, Indonesia, was also performing well with production capacity of three million tonnes of coal per day.
"The said achievement will lead to the continuous development of the coal business, which may decrease the risk of carrying out the coal business in Indonesia," the company said in a statement.
Indominco, established in 1989, has a vast coal concession area of 25,120 ha in Bontang, East Kalimantan, according to an IBRA document obtained by Petromindo.
Under a first generation of coal agreement, Indominco has the right to operate its mines for 30 years until the year 2028.
The company has an estimated coal reserves of 84.5 million tons and a production capacity of 3.5 million tons per year.
Meanwhile, Kitadin has two coal concession areas in East Kalimantan covering a total area of 5,311 ha. Established in 1984, the company has a concession period of 10 years (but extendable) and an estimated coal reserves of 34 million tons and production capacity of 1 million tons per year.
The Trubaindo project is located in East Kalimantan covering an area of 50,170 ha with a 30 years concession period, while the Barasentosa Lestari mining project is located in South Sumatra covering an area of 44,236 ha and a concession period of 30 years. (*)