CNKO to set aside $160m to take over coal mining firms

Publicly listed firm PT Central Korporindo (CNKO), an operator of several coal-fired power plants, will set aside about US$160 million in cash to finance the company's plan to take over a number of coal mining companies, Kontan reported Friday.

 

Erry Indriyana, the president of the company, said in Jakarta Thursday that the acquired coal mining firms would be used to supply the coal needs of the company's three coal-fired power plants which are currently under construction.

 

He said that the acquisition plan would be carried out in the middle of 2008 when the power plants were expected to begin their operation. He did not give further details.

 

The three power plants are located in Pangkalan Bun in West kalimantan with a capacity of 11.6 MW, Rengat in Riau Island province with a capacity of 28.8 MW and Tembilahan in Riau Island province with a capacity of 21.3 MW.

 

Erry said that the company would spend at least Rp 322 billion to finance the construction of the three power plants. (*)