Sinarmas to boost Sumatra mines coal production

Coal miner PT Golden Energy Mines (GEMS), a unit of Indonesia stock exchange (IDX)-listed firm PT Dian Swastatika Sentosa Tbk (DSS), which a subsidiary of the conglomerate firm Sinarmas Group plans to boost its Sumatra coal mines production to 5 million tonnes of coal in 2012, from this year?s target of 3 million tonnes.

Despite we boost our production, it is still not enough to fulfill the demand, especially from China and India, the official told Petromindo.com.

At present, GEMS has several producing coal mines in Sumatra including Jambi coal miner PT Kuansing Inti Makmur (KIM), through which KIM owns three mines concession in Bungo regency, and PT Wahana Alam lestari (WAL) in Tebo regency, Jambi

In May 2010, KIM acquired 99 percent shares of coal miner PT Karya Cemerlang Persada (KCP) for Rp 12 billion. KCP has a coal production license.

GEM also has several exploration stage mines in Sumatra including PT Nusantara Indah Lestari (NIL) in Indragiri Hulu regency, Riau; and PT Manggala Alam Lestari (MAL) in Musi Banyuasin regency, South Sumatra.

GEMS is planning to conduct its initial public offering (IPO) on November 11, 2011. The portion of shares to be listed on the Indonesian Stock Exchange (IDX) will be around 15 percent of the company?s enlarged capital

GEMS has appointed Sinarmas Sekuritas as underwriter for the IPO.

GEMS plans to float 883.35 million shares on the IDX at a price of between Rp2,300 to Rp3,500 per share. ?Therefore, we expect to raise funds of around Rp2 trillion,? president director of PT Sinarmas Sekuritas, Kokarjadi Chandra said last week. (denny)