Itochu acquires 20 percent stake in Marunda Graha Mineral

Itochu Corporation, one of biggest trading houses in Japan specialized in marketing both thermal and coking coal, has entered into agreements to acquire 20 percent stake in PT Marunda Graha Mineral (MGM) through its subsidiary Itochu Coal Resources Australia, according to a statement from MGM Tuesday.

MGM is the holder of second generation Coal Contract of Work, located in North Barito regency, Central Kalimantan.

The statement said Itochu would obtain exclusive sales agency for the Japanese market.

According to company?s marketing director K.T. Seng, MGM, which had completed exploration in 1999, had discovered some 40 million metric ton (MT) of open-cut high quality coal reserve (low ash, low sulphur, high fluidity and high calorific value) for the coke blending in steel mill usage.

?MGM is planning to start commercial production of semi-soft coking coal from year 2003 with production of 1 million MT gradually increasing to 2 MT annually. At least 50 percent of annual production will be sold to Japan through Itochu Corporation,? said Seng.

Seng said MGM is in the process of converting the company status from Indonesian domestic investment company into foreign investment company. (alex)