Renuka applies for coal trading license

By Romel S. Gurky

Petromindo|Lucky

IDX-listed PT Renuka Coalindo Tbk said it has applied for a license known as IUP OPK license with the Ministry of Energy and Mineral Resources to be able to carry out coal trading and export.

The company said in a statement on Wednesday that once the license has been secured, it intends to purchase coal from Indonesian mining firms and export the commodity to India.

The company said that increase in coal price and stability in the market enables it to focus on coal trading.

Renuka announced in June of this year that it has completed the sale of its two coal mines PT Jambi Prima Coal and PT Surya Global Makmur, both located in Jambi Province, to an undisclosed party, and will focus on becoming coal trader.

Renuka has signed long-term contract to supply coal to its controlling company Indian sugar manufacturer Shree Renuka Sugars Limited.

Editing by Reiner Simajuntak