Gov?t okays Banpu?s entrance to Indonesian coal mining firms

Thai energy conglomerate Banpu Plc. is one step closer to formally acquire majority stakes in four coal-mining firms after the government had agreed to change the status of PT Centralink Wisesa to become foreign investment company.

Centralink, a locally owned firm, bought Indocoal Group, which owned majority stakes in four coalmining firms from Indonesian Banking Restructuring Agency in March 2001 for US$ 54 million. Centralink is financially backed by Banpu by lending the company $54 million, which could be converted to 95 percent shares of Centralink subject to the government approval.

?Investment Coordinating Board on December 12 has approved the change of status and also has declared that it is not necessarily to be followed by the change of status of its subsidiaries,? said Wimpy S. Tjetjep, a senior official at the ministry of energy and mineral resources on Friday.

Centralink has 65 percent stake in PT Indominco Mandiri with production capacity of 3.5 million tons of coal per annum, 100 percent stake at PT Kitadin with production capacity of 1.5 million tons, 65 percent stake in PT Trubaindo, which is at advanced exploration stage. The three coalmines are located in East Kalimantan. The company also has 86 percent stake in PT Barasentosa Lestari, a coalmine at pre-operating stage in South Sumatra.(alex/godang)