PKPK to complete Indo Wana acquisition in January

PT Perdana Karya Perkasa Tbk (PKPK) is expected to complete its acquisition of coal mining firm PT Indo Wana Bara Mining Coal in January next year, Kontan reported on Tuesday.

Iwan Bogananta, President Director of Indo Wana Bara, said in Jakarta on Monday that PKPK would take over up to 60 percent of Indo Wana?s shares in the acquisition plan, while the remaining 40 percent would be still owned by Ringetop Holding Venture Ltd.

As reported earlier, PKPK expected to raise funds of about Rp 6.5 trillion from the sales of its new shares to the public early next year. About Rp 5.06 trillion of the funds would be used to finance the acquisition plan, with the remainder to be used to finance the construction of a power plant and to increase working capital.

Indo Wana has secured mining permits covering an area of about 5,000 hectares in East Kalimantan, with estimated reserves of about 447 million tons.

Iwan said that Indo Wana had begun exploration activities in a mining area in West Kutai. ?We hope production could be begun in February with output level of about 150,000 tons,? he added.

He said that three companies including PetroVietnam Power, Indraco Korea and PT Huadian Bukit Asam Power, had signed long-term agreements to buy coal from Indo Wana. (*)