Idemitsu acquires 12%stake in Mitrabara Adiperdana

By Romel S. Gurky

Japanese firm Idemitsu Kosan Co.,Ltd announced on Thursday that it has acquired 12 percent share of IDX-listed PT Mitrabara Adiperdana Tbk (MA), which is one of the coal companies within Baramulti Group.

?We are continuing to market coal produced in Malinau mines which MA owns in North Kalimantan, for customers in Japan and other Asian countries,? the firm said.

Baramulti Group holds several operating coal mines including Malinau mines which are located in Malinau regency, North Kalimantan province. Malinau mines are owned by MA and producing low sulphur and low ash sub-bituminous coal. Malinau mines are planning to produce in total of 2.5 million ton by the end of 2014, and additional increase after 2015.

In Asian countries, new coal fired power generations are considered to be constructed. Furthermore, demand for steaming coals is expected to be increased, especially for good environmental feature coals (low sulphur and low ash) and low-cost coals.

?We have been in good business relations with Baramulti group and acquired 3% share of PT Baramulti Suksessarana Tbk which is one of Baramulti group companies and holds AGM mine in November 2012. By acquiring the share in MA, we can strengthen the existing relationship with Baramulti. The acquisition of shares in MA will also give us a larger selection of Indonesian coals of which export are increasing to Asian countries and that provides more steady supply for our customers,? the firm said.

?The share acquisition is a part of activities toward the restructuring of our coal business which we planned in our 4th medium term plan. We continue to enhance competitiveness of our existing assets and proceed the realignment of our coal business portfolio,? the firm added.

Editing by Johannes Simbolon