Coal India may not bid for Golden Energy Mines
Wednesday, August 3 2011 - 05:13 AM WIB
Coal India was short-listed for bidding but two officials familiar with the development indicated the go ahead from the ministries is not likely to come soon which has prevented it from submitting the final bid for the property.
The coal ministry had asked Coal India to acquire stakes only in overseas companies that are listed. Golden Energy Mines is an unlisted company hence the clarification is required.
The board of directors of Coal India subsequently sought a clarification from the coal ministry on whether it could acquire stakes in specific assets, since these assets are not listed. But the ministry has not responded to the query.
"We had asked the ministry for some clarifications and a final go ahead on bidding for Golden Energy Mines. The coal ministry is yet to get back to us. We cannot bid as long as we have not received the go ahead," a senior Coal India official said on condition of anonymity as quoted by the Economic Times of India.
Sinar Mas plans to sell about 30-40% stake in PT Golden Energy Mines to strategic investors, and then plans to list the coal company in Jakarta. It is in negotiations with several strategic investors.
The group has extended the deadline for submitting bids to August 2011, from June after Tata Power Co which was one of the short-listed bidder, decided to withdraw from the race due to increasingly competitive bidding. Bids for the stake had crossed $500 million.
Golden Energy Mines holds three coal blocks, with combined reserves of more than one billion tons, mostly from its block at Kalimantan, in the Indonesian part of Borneo. It also has two blocks in Sumatra, a major island of Indonesia located most west. (*)