Idemitsu increase interest in Mitrabara Adiperdana

By Romel S. Gurky

Japanese firm Idemitsu Kosan Co.,Ltd. announced on Tuesday that it has acquired an additional 18 percent share of IDX-listed Mitrabara Adiperdana Tbk (MA), one of the coal mining subsidiaries of Baramulti Group, bringing the firm?s share in MA to 30 percent.

?We are continuing to support to enhance cost competitiveness of Malinau Mines which MA owns in North Kalimantan, and to market coal produced in Malinau mines for customers in Japan and other Asian countries,? the firm said in a statement.

The firm said it has been in good business relations with Baramulti mainly in purchasing the latter?s coal and acquired 3 percent share of PT Baramulti Suksessarana Tbk which is one of Baramulti group companies and holds AGM mine in November 2012.

The firm acquired 12 percent share in MA in July 2014.

?We expect that we can support the activity to improve cost competitiveness of Malinau Mines and further strengthen the existing relationship with Baramulti. The acquisition of shares in MA will also provide us more steady supply of good environmental feature coals and low-cost coals of which exports are increasing to Japan and other Asian countries,? the firm said.

Malinau mines are producing low sulphur and low ash sub-bituminous coal. MA is planning to produce total of 2.5 million tons of coal by the end of 2014, and further increase the output after 2015.

?This 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 said.

Editing by Johannes Simbolon