Duta Pertiwi expands coal mine operation

IDX-listed company PT Duta Pertiwi Nusantara Tbk (DPNS), which is currently involved in the production of glue for industry and chemical products, is seeking additional investment worth at least Rp 150 billion to expand its coal production.

DPNS president director Siang Hadi Widjaya said in Jakarta on Wednesday that the new investment would be needed to finance the expansion of its subsidiary PT Intitirta Primasakti which is engaged in coal mining, according to Kontan.co.id.

Siang said that DPNS would sell its shares in a joint venture with Chang Chun Plastic Co Ltd to partly finance the expansion plan. DPNS has agreed to sell its 25 percent stake in the joint venture to Chang Chung for US$4.45 million or about Rp 44 billion.

He said that DPNS might issue right shares or seek loans from banks to obtain the remaining Rp 106 billion. According to its new business plan, DPNS would continue its glue manufacturing but coal production is expected to become the main contributor of the company?s future revenues.

Intitirta operates a 46,000 hectare concession in Sorolangun, Batanghari regencies, Jambi Province, and in Musi Banyuasin Regency in South Sumatra Province, which will be reduced to 25,000 hectares once production has started. The mine is third generation of coal contract of work (CCoW).(*)