Citra Kebun to take over iron ore miner for Rp 579 billion

PT Citra Kebun Raya Agri Tbk (CKRA) plans to take over the entire shares of iron ore miner Brooksvale Capital Ltd for Rp 579 billion, Investor Daily reported.

Citra Kebun?s corporate secretary Febria Hedyanti said in Jakarta on Tuesday that the acquisition would be financed with part of Rp 750 billion funds raised from the sales of the company?s 99 percent stake in PT Horizon Agro Industry.

Brooksvale Capital has three subsidiaries involved in iron ore mining including PT Bumi Babahrot, with a concession area of 550 hectares in Aceh, PT Sumber Minera Bersama and PT Minang Pangeran which own iron ore mines in West Sumatra.

Sumber Minara has a concession area of 2,807.43 ha in Pasaman regency with total reserves of 46,65 million tons while, Minang Pangeran has a concession of 68 hectares in Solok regency with reserves of about 4 million tons.

?The acquisition is intended to strengthen our mining operations especially in iron ore mining. The expansion is expected to improve the company?s financial performance,? Febria said. (*)