Murung Raya government wants to acquire IndoMet Coal stake

The Murung Raya regency administration in Central Kalimantan province reiterated its interest in acquiring a stake in IndoMet Coal project following reports that BHP Billiton is planning to divest the asset.

Investor Daily quoted Murung Raya Regent Perdie M. Yoseph as saying Friday that the planned acquisition will be made by administration-owned company called PD Petak Malai Bulu Merindu.

He added that the company may also team up with other private investors in realizing the acquisition of IndoMet Coal.

Perdie stressed that it?s quite logical for Murung Raya to have stake in the IndoMet Coal project as the coal concessions are located within the regency. The administration first announced its interest in IndoMet Coal on May 13.

Director General of Mineral and Coal Bambang Gatot Ariyono confirmed Tuesday previous reports that BHP Billiton is planning to divest its stake in IndoMet Coal. ?It?s a possibility, but it has not been discussed yet who will buy the stake,? Bambang.

BHP Billiton holds a 75 percent stake in IndoMet Coal, while the remainder 25 percent shares are held by IDX-listed coal giant PT Adaro Energy Tbk.

IndoMet Coal comprises of seven coal contracts of work (PKP2B) with combined concessions of 331,630 hectares and coal reserves of 1.27 billion tons in Central and East Kalimantan. Production rate currently stands at about 1 million tons of coking coal per year. Production started last year. (*)