Malaysia?s TNB not involved in the buying of coal in Indonesia
Friday, March 21 2003 - 02:08 AM WIB
Minester said the Finance Ministry had checked and found that TNB had no involvement with the said company.
"In the buying of a coal company in Kalimantan (Banjarmasin) Indonesia, TNB's involvement is that it has shares in Dynamic Acres Sdn Bhd," he said when winding up the debate on matters pertaining to his ministry in the Dewan Rakyat Thursday.
Shafie said that TNB bought the majority share (70 percent) in TNB Coal International (TCI) which has a 100 percent equity in Dynamic Acres Sdn Bhd. TNB Coal is a subsidiary of TNB. Dynamic Acres has a 99 percent majority equity in PT Dasar Eka Jayatama, Indonesia.
He said TNB was not involved in the coal business but the purchase of the equity in the coal company was a strategy to counter TNB's operational risks exposure with the use of coal which rose significantly from 15 percent to 40 percent.
This followed the government's policy to diversify its sources of power supply from depending on gas to coal and the choice of the coal mine was to ensure supply of coal and cost effectiveness to TNB in the long run.
"TNB has no information on the shareholders of Dynamic Access Sdn Bhd and TNB has also made a company check on the name of Dynamic Acres Sdn Bhd and that it has two shareholders. TNB also does not know if the two shareholders have any debts with a third party," he said in response to a question from Husam Musa (PAS-Kubang Kerian) with regards to the matter.
He said TNB and the said two shareholders had signed a share Sale and Purchase agreement on the condition that the shares would be free from any burden. (*)