Pama buys more stake at Asmin Bara mines

By Edgar Subroto

PT Pamapersada Nusantara (Pama), a unit of IDX-listed heavy equipment distributor and miner PT United Tractors Tbk, has bought an additional 15% stake at Central Kalimantan coal miners PT Asmin Bara Bronang (ABB) and PT Asmin Bara Jaan (ABJ) from PT Andalan Teguh Berjaya (ATB) for US$80 million.

Pama had paid an advance to ATB amounting to $24 million. The settlement of the remaining purchase consideration and the completion of the acquisition are subject to fulfillment of certain conditions, including obtaining government approval, the parent company said.

Once completed, Pama will have a 75.4% stake in ABB and ABJ mines.

Previously, Pama paid US$201.8 million and Rp151 million for 60.4 percent stake in ABB and ABJ.

ABB and ABJ have coal mines in Murung Raya and Kapuas regencies. Both mines affiliates of PT Arpeni Pratama Ocean Line Tbk. ABB has high quality coal with CV of around 6,800-7,000 kcal/kg, while ABJ's coal has CV of around 5,800-6,000 kcal/kg.

Editing by Reiner Simanjuntak