Kapuas Prima plans coal trading business

By Thomas Sembiring

Petromindo|Thomas

IDX-listed mining firm PT Kapuas Prima Coal Tbk plans to set up a coal trading business next year.

Kapuas Independent Director Padli Noor said on Monday that the planned coal trading business is in line with the upcoming completion of its lead smelter in Central Kalimantan Province, which will require coal supply.

?There is such possibility. We have plans for coal mining and trading going forward,? he told Petromindo.com.

He added that construction progress of the smelter project has reached 83 percent and is targeted to start operation early next year.

Kapua Prima recently completed an initial public offering, raising around Rp 147 billion in proceeds, of which 80 percent will be used for exploration activities and the remainder for working capital.

Kapuas Prima operates mines in Central Kalimantan producing mineral commodities such as lead, zinc, and iron ores. The company owns a 30 percent interest in PT Kapuas Prima Citra, which is developing a lead smelter with capacity of 40,000 tons of lead concentrates, and 20,000 tons of lead bullion per year.

Editing by Reiner Simanjuntak