E. Kalimantan coal group to float shares at IDX end of 2009

Indonesian coal mining group PT.Bhakti Energi Persada (BEP) plans to float shares at the Indonesian Exchange through IPO scheduled by the end of the year, the company?s top official said on Tuesday.

President Jeffrey Mulyono told reporters that the company has appointed PT.Bahana Securities as lead underwriter and will float 20 percent of BEP?s shares.

He did not disclose the amount of funds the company intended to raise.

BEP has four low-rank coal mines at pre-production stages in East Kalimantan, namely: Pesona Khatulistiwa Nusantara (PKN), Persada Multi Bara PMB), Bumi Murau Coal (BMC), dan Telen Eco Coal (TEC) with total reserves of 5.7 billion tonnes.

Jeffrey said coal from the mines will be upgraded to 5,600kcal/kg (AR) from 3,500kcal/kg by establishing coal upgrading plant using a technology called Coal Upgrading Briquetting.

Jeffrey said PKN will start production in August this year with planned output of 335,000, ramping up to 1MT in 2010 and 3MT in 2011.

PKN has clinched 5-year supply contract to ship 420,000 tonnes of coal annually to Chinese firm Petrocom Energy Limited.

Jeffrey said some of coal from PKN will be upgraded to 5,600kcal/kg (AR) from 3,500kcal/kg by establishing coal upgrading plant using a technology called Coal Upgrading Briquetting with commercial production seen June 2011.

According to Jeffrey, BEP is currently conducting mine planning design for its three East Kutai concessions and production will be started in 2011 with initial production of 5MTPA. BEP will be using the service of the planned 140-km railway to be built by a consortium led by UAE firm RAK Minerals & Metals Investments.

BEP is controlled by businessman TP Rachmat, who is also a controlling shareholders at IDX-listed coal giant PT.Adaro Energy, and his long-time business partner Benny Subianto. (Bernard)

No	Mine	Location	Coal Reserves (million tons)	Calorific Value (kcal/kg) (adb)	Calorific Value (kcal/kg) (ar)	Inherent Moisture (IM) (adb)	Total Moisture (TM) (ar)	Total Sulphur
1	Telen Eco Coal (TEC)	East Kutai regency, East Kalimantan	495 (JORC)	?5,400*	3,500	15%	45%	<0,2%
2	Persada Multi Bara (PMB)	East Kutai regency, East Kalimantan	3,670 (JORC)	5,400*	3,450	16%	46%	<0,2%
3	Bumi Murau Coal (BMC)	East Kutai regency, East Kalimantan	1,420 (JORC)	5,400*	3,450	16%	46%	<0,2%
4	Pesona Khatulistiwa Nusantara (PKN)	Bulungan regency, East Kalimantan	128 (SNI)	5,300*	3,400	14%	45%	<0,2%
Total			5,713	?	?	?	?	?
Note: * CV adb determined on stated IM; JORC= Joint Ore Reserves Committee; SNI= Standard Nasional Indonesia