Malaysia?s VSI to enter coal mining business in S. Kalimantan

Malaysian manufacturer V.S. Industry Berhad (VSI) is set to enter coal mining business in Indonesia through PT VS Mining Resources (PTVS Mining), a foreign capital investment company, who planned to acquire 100 percent equity interest in PT Berkat Banua Inti (PTBBI), a coal mining company with mines located in South Kalimantan.

In a recent statement to Bursa Malaysia, VSI said it had remitted a sum of US$3.6 million to acquire 45 percent equity interest PTVS, comprising 3.6 million shares of US$1.00 each in the share capital of PTVS.

According to the statement, PTBBI have obtained exploitation permit for 107.56 hectares with a concession period of 5 years and found to have a measured deposit of 3,982,272 tons of coal with gross calorific value ranging from 5,160-6,189 kcal/kg. Meanwhile, PTBBI also operates a concession area of 3,536.00 hectares with exploration permit.

VSI added that PTVS Mining was currently negotiating with a few major coal buyers including power plants and intends to enter into long term coal supply contracts. (Robert)