PKN seeks minister approval over proposed management reshuffle

By Thomas Sembiring

North Kalimantan coal mining firm PT Pesona Khatulistiwa Nusantara (PKN) is in the process of seeking approval from Minister of Energy and Mineral Resources Ignasius Jonan over a proposed top management reshuffle.

?We?re sending a letter to the minister for approval,? said Tria Suprajeni, PKN Director to Petromindo.com on Thursday via short messages. She declined to provide further details.

As has been previously reported by this portal, PKN is expected to have a new president director as company shareholders have approved a proposed management reshuffle that would see Jeffrey Mulyono leaving the top post of the company. Jeffrey confirmed to Petromindo.com on May 15 that the reshuffle was expected to be completed within two months.

Minister Jonan has issued Ministerial Regulation No 42/2017, which among others stipulate that changes in board of directors and share ownership of companies engaged in mining and energy sectors in the country must obtain approval of the minister.

Meanwhile, a source told Petromindo.com on Thursday that the management reshuffle at PKN comes after Harita Group increased its ownership in the company from the previous 5.99 percent. The increase in the PKN stake was made to help ensure coal supply for the group?s 130 MW coal-fired power plant in Pulau Obi, North Maluku Province, where the group operates a nickel smelter through PT Megah Surya Pertiwi.

This portal reported in January that the Ministry of Energy and Mineral Resources has assigned coal output volume of 3 million tons for PKN this year, much lower than the 5.5 million tons initially proposed by the company. Jeffrey said at the time the company will seek for upward revision of the coal production target mid-this year convinced that coal demand will increase and that the company has a capacity to actually produce up to 6 million tons.

Editing by Reiner Simanjuntak