Golden Eagle to acquire additional stake in S. Kalimantan coal mine

IDX-listed PT Golden Eagle Energy Tbk is seeking to acquire another 25 percent stake in South Kalimantan coal mining firm PT Tabalong Prima Resources (TPR), thus allowing it to become the majority owner.

?We now have (about) 34 percent, by acquiring another 25 percent shares, we?ll become the majority shareholder,? Golden Eagle President Director Roza Permana told Kontan on Tuesday.

Golden Eagle through its indirect coal mining subsidiary PT Internasional Prima Coal (IPC) acquired last year a 34.17 percent stake in TPR and 34.17 percent stake in coal port operator PT Mitra Hasrat Bersama (MHB) for a total transaction value of US$12.3 million. Golden Eagle has an effective 39 percent stake in IPC through subsidiary PT Mega Raya Kusuma.

TPR holds a 3,145-ha coal concession in Tabalong Regency, South Kalimantan, with JOR resources of 292 million tons, and reserves of 109 million tons. Roza said that the Tabalong mine is targeted to start production in the middle of 2017.

Roza added that the company also aims to increase its stake in MHB, operates a coal port equipped with stockpile and jetty as well as conveyor system on a 60-ha area in South Barito Regency, Central Kalimantan. TPR operates integrally with MHB through joint ownership of coal hauling road linking the concession and the port. ?Therefore, we?ll no longer have to build port,? Roza said.

Golden Eagle also operates coal concession in South Sumatra, which last year produced 80,000 tons of coal, compared to 686,000 tons in Kalimantan, Kontan said. This year, Golden Eagle aims to produce 1-1.2 million tons of coal. (*)