Holding company for state mining firms finally set up

By Thomas Sembiring

Petromindo|Thomas

The government finally set up the holding company for state-controlled mining firms following shareholders? approval on Wednesday on the transfer of the government B series shares in three publicly-listed mining firms into state-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum).

?Today we?re announcing that the mine holding company has been officially set up. Members of the holding are PT Timah, PT Bukit Asam, and PT Antam,? said Budi Gunadi Sadikin, President Director of Inalum, which has been appointed by the government as the holding company for the three state-controlled mining firms, at a press conference.

Earlier in the day, a shareholders meeting of IDX-listed mining firm PT Aneka Tambang Tbk (Antam) approved the transfer of the government?s 65 percent shares in the company to Inalum. Separate shareholders meeting of IDX-listed coal miner PT Bukit Asam Tbk (PTBA) and IDX-listed tin miner PT Timah Tbk also gave approval on the transfer of the government?s shares in the respective companies, 65 percent and 65.2 percent, to Inalum.

According to Budi, the holding company has a combined asset worth around Rp 88 trillion, thus increasing its funding capacity to finance various corporate programs including acquisition of new assets. The creation of the holding company will also improve efficiency and synergies, he added.

Meanwhile, the holding company is expected to have a combined capital expenditure (capex) plan of up to 9.3 trillion next year to help finance various expansion programs.

PTBA President Director Arviyan Arifin told Petromindo.com that the company plans capex of up to Rp 5 trillion next year to help finance various projects including the planned PLTU Sumsel 8 coal-fired power plant project, expansion of Kertapati coal port, opening up of new coal railway line, and for mining operations.

Timah President Director Riza Pahlevi said that the company?s capex next year is estimated at around Rp 1-1.5 trillion to finance expansion programs. Antam?s capex next year is estimated to reach Rp 2.8 trillion to finance existing projects, excluding the planned smelter grade alumina project in Mempawah, West Kalimantan.

Elsewhere, Budi said that Inalum will utilize the London marketing office PT Timah to help market the mining products of the holding company especially in Europe.

Editing by Reiner Simanjuntak