Lanna cancels plans to sell 10% stake in Singlurus coal mine

Thailand?s second largest coal miner Lanna Resources PLC has dropped its plan to sell a 10 percent stake in East Kalimantan-based coal miner PT Singlurus Pratama (SGP) following a request made by the Ministry of Energy and Mineral Resources.

Lanna, through its wholly-owned subsidiary Lanna (Singapore) Pte Ltd (LS), has signed an agreement for the purchase of 65 percent stake in SGP for US$5.3 million. On the same day, LS entered into the Memorandum of Understanding for the sale of 10 percent stake in SGP to Pan-United Investments Pte Ltd.

Lanna said Tuesday the ministry had requested LS to issue a letter confirming that LS would maintain its shareholding proportion not less than 65 percent of the paid-up capital of SGP and thus would not sell or transfer some or all its shares in SGP to other party.

?The letter is to be part of the proof for the consideration and approval for the conversion of SGP's company status to the PMA (foreign investment) Company and for LS to directly hold shares in SGP,? Lanna said in a statement to the Stock Exchange of Thailand.

SGP is a third generation coal concession holder located in the Kutai Pasir and Balikpapan, East Kalimantan, which is believed to hold approximately 25 million tons of mineable coal reserves.

Coal production from SGP is scheduled to start this year.

Other shareholders in SGP are PT Indocoal Pratama Jaya (25 percent), PT Ambhara Karya Perdana (8 percent), Lukman Kartanagara (0.667 percent), Hitler Singawinata (0.667) and Rusdy Harmayn (0.667 percent). (Robert)