Kepco buys 1.5% of Adaro shares for $56.5 million

Korea Electric Power Corp. (KEPCO) said Thursday it has purchased a 1.5 percent stake in IDX-listed energy firm PT Adaro Energy for US$56.5 million.

The stake purchase will allow KEPCO to secure three million tons of coal annually, the company said in a statement.

Adaro Energy is a holding company, which owns South-Kalimantan coal miner PT Adaro Indonesia, coal terminal operator PT Indonesia Bulk Terminal, coal mining contractor PT Saptaindra Sejati and power plant operator PT Makmur Sejahtera Wisesa.

Adaro Indonesia, the country's second largest producer has targeted coal production at 42-45 million tons this year from about 38.5 million tons last year. (*)