Harapan Insani Indotama acquires Adaro?s share

Local company PT Harapan Insani Indotama is reported to have reached agreement to acquire 11 percent share of PT Adaro Indonesia, the country?s largest coal producer which operates giant coal mine in South Kalimantan.

Prior to acquisition, New Hope Corporation Limited, via its wholly owned subsidiary Indonesia Coal Pty Limited, holds a 50 percent interest in. The remaining equity in Adaro is held by Mission Energy and (10 percent) a local company PT Asminco (40 percent).

According to the coal contract of work (CCOW), Adaro is obliged to divest at least 51 percent of its equity to local company or to Indonesian citizens or to Indonesian government ten years after fist production commences.

Adaro, which started production in October 2002, must divest 51 percent equity by October 2002.

Therefore, to comply with the CCOW the foreign shareholders in Adaro namely Mission Energy and Indonesia Coal Pty Limited, had agreed to sell interests of 1.83 percent and 9.17 percent respectively in PT Adaro Indonesia to PT Harapan Insani Indotama, an Indonesian established and owned company.

At the conclusion of the sale, Indonesia Coal Pty Limited will own 40.83 percent of PT Adaro Indonesia, while Edison Mission will hold 8.17 percent.

The value of the transaction is not immediately known.

Adaro targets to produce 18 million of coal this year.(alex)