Egco to divest stake in Indonesian coal mine
Wednesday, May 2 2001 - 09:30 AM WIB
In a bid to focus on electricity production and distribution, Thailand's leading independent power producer Electricity Generating Plc. Ltd. (Egco), is expected to close deal to sell its 70% stake in its subsidiary Egco Mining Co to potential buyers this week, according to Bangkok Post daily
"Negotiations are under way with four buyers Energo, AED Holding, JB Energy and SCF Finance & Securities which are all shareholders of Egco Mining, a coal venture in Indonesia," said the paper.
The four companies hold a combined 30% stake in Egco Mining.
Egco Mining Co. has 75 percent stake in PT Borneo Indobara, a coal company at exploration stage in South Kalimantan.
Earlier report said sub-bituminous and bituminous coal reserve in the area could reach up to 100 million tons.
The paper further said Egco had previously offered its interest in Egco Mining to other mining companies but received no response, citing poor coal quality as a reason. (*)