Perdana Karya cancels C. Kalimantan coal mine acquisition

By Giok Manna

PT Perdana Karya Perkasa, an IDX-listed company which is engaged in coal mining, oil and gas mining construction services, decided not to acquire a coal mine in Central Kalimantan due to aspects related to results of the legal due diligence, the company?s Director said on Thursday.

Finance Director, Untung Haryono said the cancellation of the acquisition is related to the permit license aspect.

Although, the company cancelled the acquisition of the coal mine in Central Kalimantan, it is still in progress to acquire two other coal mines located in East Kalimantan, he said. ?At present, we are conducting legal and technical due diligence,?

Earlier, the company?s Corporate Secretary Herry Priambodo said that the mine is estimated to hold 60 million tonnes of coal in reserve with calorific value of 5,800-5,600 cal/kg (ADB). The acquisition may cost Rp 500 billion. ?The execution (of the acquisition) will most probably take place in the third quarter,? Herry said.

Editing by Denny H. Tarigan