CKRA completes acquisition of 88% of PIT

Indonesia-listed plantation company PT Citra Kebun Raya Tbk (CKRA), said it has completed has acquisition of an 88 percent stake in iron ore miner PT Perdana Indo Tambang (PIT) as part of the company?s program to expand into mining operations, Kontan reported Saturday.

CKRA president director Yudhi Asmara Yasmine said in Jakarta on Friday that under the acquisition agreement, which was signed in February 2, CKRA acquired the 88 percent stake in PIT for Rp 500 million.

PIT holds an iron ore concession covering about 3,000 hectares , with estimated iron ore reserves of about 2.34 million tons. The company has begun commercial production last year with a capacity of 8,000 metric tons.

Up to September 2001, the company?s iron ore production reached 24,300 metric tons (MT). CKRA plans to gradually increase production capacity to 45,000 MT by 2017.

CKRA which mainly operated in plantation activities has recently sold one of its subsidiary PT Horizon Agri Industry to PT Rajawali Agro Andalan Nusantara for Rp 750 billion. CKRA said it divested its agriculture business because it no longer gave significant contribution to its earnings. (*)