IBRA to sell four coal-mining firms this year
Friday, July 28 2000 - 04:00 AM WIB
The Indonesian Bank Restructuring Agency (IBRA) plans to sell four coal-mining firms this year including PT Indominco Mandiri and PT Kitadin as part of its asset disposal program.
The four coal-mining firms belong to the Salim Group conglomerate.
"We will sell the Salim coal companies in the fourth quarter of this year," an IBRA source told Petromindo.
He declined to provide details of the disposal program.
IBRA is a unit of the finance ministry with a mandate to help restructure and the country's banking and corporate sector. The agency controls some Rp 600 trillion of assets transferred from the banking industry. The Salim Group has transferred ownership in some 100 companies to IBRA in a bid to repay the obligation of its formerly owned Bank Central Asia (BCA) to the government.
IBRA must dispose the assets in a bid to raise cash to help finance the country's bank restructuring program. This year the agency is targeted to raise around Rp 18.9 trillion in cash to be contributed to the 2000 state budget.
The four coal mining companies to be sold by IBRA are part of the Salim assets transferred to the agency.
Out of the four coal-mining firms, only two: Kitadin and Indominco which had already in the production stage, while the other two (PT Trubaindo Coal Mining and PT Barasentosa Lestari) are still in the exploration stage.
Indominco, established in 1989, has a vast coal concession area of 25,120 ha in Bontang, East Kalimantan, according to an IBRA document obtained by Petromindo.
Under a first generation of coal agreement, Indominco has the right to operate its mines for 30 years until the year 2028.
The company has an estimated coal reserves of 84.5 million tons and a production capacity of 3.5 million tons per year.
Meanwhile, Kitadin has two coal concession areas in East Kalimantan covering a total area of 5,311 ha. Established in 1984, the company has a concession period of 10 years (but extendable) and an estimated coal reserves of 34 million tons and production capacity of 1 million tons per year.
The Trubaindo project is located in East Kalimantan covering an area of 50,170 ha with a 30 years concession period, while the Barasentosa mining project is located in South Sumatra covering an area of 44,236 ha and a concession period of 30 years.(*)