Ministry to evaluate acquisition of IndoMet Coal
Saturday, June 11 2016 - 04:28 AM WIB
The Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources will evaluate the acquisition by IDX-listed coal giant PT Adaro Energy Tbk of PT IndoMet Coal from BHP Billiton once the complete transaction document has been submitted.
Director General of Mineral and Coal Bambang Gatot Ariyono said that his office has been verbally informed about the transaction but has yet to receive the necessary documents for evaluation process.
He said that the transaction must be approved by the ministry.
Bambang, however, said that the divestment of IndoMet by BHP Billiton is not linked to investment climate condition in Indonesia. He said that the Aussie firm decides to divest IndoMet as it does no longer fit with the company?s long term business strategy.
ASX-listed BHP Billiton has recently secured an agreement to sell its 75 percent interest in IndoMet Coal to its equity partner PT Alam Tri Abadi, a subsidiary of PT Adaro.
IndoMet Coal comprises of seven Coal Contracts of Work which are located in Central and Eastern Kalimantan. The Haju mine, which is located within the Lahai Coal Contract of Work, has a production capacity of one million tons of coal per annum and has been in production since 2015.
Editing by Reiner Simanjuntak