PTT ups stake at Indonesia coal mines through Straits acquisition

Thai firm PTT Public Company Limited announced on Thursday that it has signed a US$545 million deal to buy the entire shares of ASX-listed miner Straits Asia Resources Limited, which is in the process of spinning off all of its non-coal assets into new entity (demerger).

The acquisition will proceed only if the demerger is approved by shareholders and the Australian courts.

The demerger is scheduled for completion in late February 2011.

Once the demerger completed as planned, SRL will retain its 40% interest in coal producer PTT Asia Pacific Mining or (PTTAPM), and A$50 million in cash.

PTTAPM's key assets are a 45.6% interest in Straits Asia Resources, which operates the Sebuku and Jembayan coal mines in Kalimantan, Indonesia, a 35% interest in a joint venture company with coal exploration rights in Brunei and a 33.5% interest in coal deposits in the Sakoa coal basin in Madagascar.

PTT, which currently has a 60% interest in PTTAPM, will wholly own PTTAPM after the SRL acquisition is completed, PTT added.(alex)