KS sets up subsidiary to handle coal and iron ores procurement

PT Krakatau Steel Tbk (KS) plans to establish a new subsidiary to specifically handle the procurement of coal, iron ores, manganese, lime and other minerals needed by the country?s largest steel producer, Investor Daily reported on Wednesday.

KS President Director Fazwar Bujang said in Jakarta on Tuesday that the company was still waiting for the authorization for the establishment of the joint venture which would be named PT Krakatau Material Prima.

?In the initial stage, Krakatau Material will have a paid-up capital of Rp 50 billion and can be increased to Rp 200 billion,? he said.

Fazwar said that the new subsidiary would be engaged in trading and procurement of coal, iron ores, manganese, lime and other minerals needed for the smelting process. In the future, the new subsidiary is expected to have its own mining concessions, he added.

KS earlier reported its revenues rose to Rp 5.71 trillion in the first quarter of this year from Rp 4.23 trillion in the same period of 2011. Operating profits rose to Rp 164.12 billion from Rp 153.1 billion, while net profits dropped to Rp 58.34 billion from Rp 141.89 billion, respectively compared to the same period of previous year(*)