Government to set up mining holding company
Saturday, January 9 2016 - 05:03 AM WIB
The Office of State Minister of State Owned Enterprises hopes to be able to set up a holding company for state-controlled mining firms by end of this year.
This was said by State Minister of State Owned Enterprises Rini Soemarno Friday following agreement among state-controlled mining firms including IDX-listed miner PT Aneka Tambang Tbk, IDX-listed coal miner PT Bukit Asam Tbk, IDX-listed tin mining firm PT Timah Tbk, aluminum producer PT Indonesia Asahan Aluminium to form synergies in various areas.
These firms will be consolidated into the planned holding company, which would synergize the respective strengths and potential of the firms, and expand capacity in getting financing, thus ending reliance on state funds, Rini explained.
Rini said that her office has also set up a committee assigned to formulate the holding company scheme.
She said that the setting up of the holding company forms part of efforts in the country to generate greater value of its mining commodities through the development of downstream industries.
As part of the synergy among state firms, also on Friday, Bukit Asam signed an agreement with Aneka Tambang, under which the former would develop a 2x40 MW coal-fired power plant, which is expected to be completed in 2018, to supply power to the latter?s planned ferronickel plant in Halmahera Timur Regency, North Maluku.
Editing by Reiner Simanjuntak