PTBA to sign coal mining acquisition deal next month: Source

State-owned coal producer PT Tambang Batubara Bukit Asam (PTBA) will next month sign a sales and purchase agreement to acquire PT Multi Harapan Utama (MHU), an East Kalimantan-based coal producer.

?Both parties (PTBA and MHU) have exchanged the draft of agreement documents. The final agreement is planned to be signed on January 31, 2005,? an industry source told Petromindo.Com Wednesday.

PTBA will acquire 100 percent stakes in MHU, the source added.

MHU is an Indonesian joint venture company incorporated in 1986. The venture represents the interests of businessman Ibrahim Risjad and the Napan Group of Indonesia (50 percent), PT Asmin Pembangunan Pratama (10 percent), and Swabara Australia Pty Limited (40 percent).

The company operates a 47,232-ha coal mining concession located 60 km to the south west of the provincial capital of Samarinda with the major Mahakam river passing through the area.

MHU produced 1.23 million tons of coal last year. (alex)