Indika to acquire BHP?s coal mine

PT.Indika Energy, an energy which will float shares at the Indonesian Stock Exchange this month is in the process of finalizing acquisition of coal mine from Australian resources firm BHP Billiton.

Director General of Mineral, Coal and Geothermal at the Ministry of Energy and Mineral Resources Simon Sembiring told Petromindo.Com that BHP is currently asking for the government?s approval for the transaction.

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 Bindi-Betitit area with reserves (measured, indicated, inferred) of 47 million tones.

Indika also has 46 percent shares in PT.Kideco Jaya Agung.

According to a prospectus released by Indika on Tuesday, it expects acquisition price of the mine to be between US$20-25 million and has placed $6 million in escrow account.

Coal from the mine haas typical CV of 5,481-5,490 Kcal ADB with sulfur content of 3.1-4.8 percent.

Indika expects to spend up to $80 million to bring the mine into production in 2010. (godang)