Renuka switches business to coal trading

Petromindo

IDX-listed PT Renuka Coalindo Tbk is seeking permit to become a coal trader in a move to switch business from coal mining after the company sold last year its entire coal assets, Kontan reported on Thursday.

The paper quoted Renuka Corporate Secretary Farah Rakhisah as saying that the company has obtained shareholders? approval to switch business to coal trading.

Logistical obstacles had hampered the company from realizing its planned annual coal production target of 5 million tons, the paper said, adding that realized annual output had only been in the range of 300,000-400,000 tons.

Renuka last year sold two coal subsidiaries including PT Jambi Prima Coal and PT Surya Global Makmur, raising Rp 6 billion in proceeds. ?Jambi Prima Coal was sold to PT Indobagus Energy for Rp 5 billion, and another Rp 1 billion from the other mine,? Farah said. Adding that the company is currently still in the process of handing over the coal assets to the buyers.

She said the company has yet to decide on the details and when to start the coal trading business as it is still in the process of acquiring the required license.

Renuka last year sold about 90 percent of its coal output to India. (*)