Golden Eagle to acquire coal mine

IDX-listed coal miner PT Golden Eagle Energy Tbk, a unit of the Rajawali Group, plans to acquire a coal concession either in South Sumatra or East Kalimantan, estimated to worth about US$93.7 million, Investor Daily reported on Tuesday.

The paper quoted company President Director Hendra Surya as saying that Golden Eagle was targeting coal concession with reserves of between 25-125 million tons.

Hendra said that the price of the asset is now much cheaper at between $0.25-0.75 per ton, compared to about $1 per ton last year.

He said that has approached at least eight firms, but is now seriously looking into the assets of four companies.

Golden Eagle will use internal funds, bank loans and Rp 50 billion process from recent rights issue to finance the planned acquisition.

Golden Eagle via its subsidiary PT International Prima Coal (IPC) operates a coal concession in East Kalimantan. The company also operates a concession in South Sumatra via subsidiary PT Triaryani, which starts commercial production this year.

Elsewhere, Hendra said that company revenue this year is expected to increase by 30 percent to Rp 45.69 billion, while net profit to rise by 25-30 percent to Rp 21.8 billion. (*)