Indika eyeing further coal projects acquisition

IDX-listed energy and contractor firm PT.Indika Energy said it would continue seeking coal assets acquisition opportunities to add to its portfolio.

?Indika is still looking for green field and brown field coal projects to be acquired,? President Director Arsjad Rasjid said on Monday.

Arsjad said Indika is still in talks with Anglo-Australian resources giant BHP Billiton to acquire BHP Kendilo mine in South Kalimantan. ?Acquisition process is ongoing, but the mine?s reserves are not as big as we thought earlier,? he said without giving detail. He also said that the acquisition process will also depend on talks between BHP and government about the area status. He also did not give any detail.

BHP Billiton has 100 percent in PT.BHP Kendilo Coal Indonesia, which has a mining concession near PT.Kideco Jaya Agung?s coal concession. BHP has ceased mining operations at its Petangis mine within the concession in 2003 due to reserves depletion, but maintains a reserves at Bindu-Betitit area with reserves (measured, indicated, inferred) of 47 million tones.

Indika said in June 2008 it expected acquisition price of the mine to be between US$20-25 million and has placed $6 million in escrow account.

Reuters, citing sources, also reported that Indika is eyeing to buy majority stake at East Kalimantan miner PT.Berau Coal.

Indika, which has 46 percent stake at East Kalimantan coal mining firm PT.Kideco Jaya Agung, has completed acquisition of 50 percent stake at East Kalimantan coal mining firm PT.Santan Batubara, which is expected to produce 2 million tonnes next year and recently acquired 13 mining concession in West Kalimantan with the aim of bringing the project into production in 2012.

An industry source said that Indika is in strong position to acquire more projects as it had some US$400 million in cash ready to be used to finance acquisition. (denny)