Macro to acquire PT Sarmar Jaya Cemerlang

By Nur Azizah

Australia-listed firm Macro Corporation Limited stated that it has agreed to pay a total amount of US$7.8 million and $2 million in several cash payments to acquire mining approvals and a further royalty payment of US$5.8 million progressively against the coal export income when the mines started its production, to acquire 70 percent equity interest in PT Sarmar Jaya Cemerlang (SJC) through subsidiary Macro Resources Pty Ltd.

The company stated that it also granted an irrevocable option to purchase the remaining 30 percent for a consideration of US$10.7 million, with payment terms and conditions to be mutually agreed after the completion of the 70 percent acquisition.

SJC was granted exploration rights on October 30, 2004 on a 10,000 hectares of land in Central Kalimantan, which is located less than 100 kilometers from PT Adaro's coal deposit, currently the second largest thermal coal producer in the country. SJC's concession is claimed to have up to 55.6 million tons of coal deposits, while report from Sucofindo revealed that the concession has two coal layers of coal with calorific value (cv) of about 5,500 kcal/kg accounted between 65 and 70 percent and the remaining 30 to 35 percent with cv of 6,500 kcal/kg coal. A source of the company said that the concession is located about 35 kilometers from Barito river.

The group also announced that another wholly-owned subsidiary OS Cairns Pty Ltd has entered into a conditional sale and purchase agreement to sell its motor vessel known as OS IV for a total cash consideration of A$3.65 million.

Macro Resources Pty Ltd is currently in the process of incorporating a foreign direct investment company (PMA) in Indonesia to be known as PT Macro Resources to undertake the investment in SJC. The PMA company is expected to complete its formation by the second quarter of this year.

Editing by Er Audy Zandri