Hanson sells iron ore asset
Wednesday, July 8 2015 - 02:08 AM WIB
IDX-listed mining and property company PT Hanson International Tbk has recently sold its iron ore mine amid the lingering weak commodity price and the government?s export ban policy.
The company said in a statement last week that it had on June 29 signed an agreement to sell 99.5 percent of its stake in iron ore mining subsidiary PT Binadaya Wiramaju to non-affiliated company called PT Bina Cipta Manunggal for Rp 405 billion.
Hanson said that proceeds from the sale of the stake will be used to help finance property development projects, as the company begins unloading loss-making mine assets in the wake of the drop in the price of mining commodities and the policy introduced by the government early last year to ban the export of mineral ores as it pushed miners to develop domestic smelters.
Hanson said last year it was seeking for the help of a Chinese investor to develop Binadaya, which holds iron ore concession in Sukabumi, West Java.
Elsewhere, Hanson said in the statement it had also signed an agreement on June 26 to sell 60 percent stake in PT De Petroleum, which is engaged in oil waste treatment, to PT Axel Sejahtera Abadi for Rp 15 billion.
Hanson also owns a tin mine asset run by another subsidiary PT Gelar Karya. Kontan quoted Hanson President Director Benny Tjokrosaputro as saying Tuesday that the company has also sold its tin asset, but did not provide further details.
Editing by Reiner Simanjuntak