KPC likely to appoint Mitsubishi Japan sole agent

East Kalimantan coal producer PT.Kaltim Prima Coal (KPC) is likely to appoint Japanese trading house Mitsubishi Corp. as sole agent to market KPC?s coal to Japan, an official said Saturday.

?KPC and Mitsubishi is close to sign deal, probably later this month or next month,? said Peter Tabalujan, Head of Investor Relation of PT. Bumi Resources Tbk (Bumi). The JSX-listed Bumi is now100 percent owner of KPC.

Mitsubishi had been competing to be appointed Japan sole agent with Mitsui Corp. and Sumitomo.

Peter said Mitsubishi will likely be given allocation to market around 40 percent of KPC?s planned 25 million tons of coal next year. ?This allocation is in line with target to increase market share to Japan from around 20 percent currently,? he said.

KPC has also struck similar deal with Swiss-based Glencore AG to market KPC?s coal to international market outside Japan.

Peter said Glencore will receive 5 percent fee for its trading service, and similar fee may also be applied in dealing with Mitsubishi. (alex/godang)