Cipaganti eyeing coal transportation firm

Car rental Cipaganti Group is planning to acquire shipping firm to tap the company?s coal unit output in the future. Cipaganti Group through its coal unit PT Cipaganti Inti Resources (CIR) has started coal production from a mine in Paser Penajam Utara regency, East Kalimantan

CIR has eight other coal mines in East Kalimantan including Laut Tambang block in Damai, East Kutai, Sandaran block in East Kutai, Bentian block in West Kutai and Bongan block in West Kutai. The other eight blocks have not come into production yet.

The company?s advisor Iwan Purnawan told reporters that the shipping firm's fleet include several sets of tugs and barges without revealing the shipping firm?s name. Cipaganti will acquire a 90% stake in the company, he added.

Cipaganti will spend around US$50 million to acquire the shipping firm and to buy additional 5 sets of tugs and barges, he said, while explaining 1 set consists of 1 tug boat and 2 barges.

He also said that CIR is also eyeing two more coal mines in West Kutai and East Kutai regencies, respectively. (giok)