SIS increases coal production target, delays IPO to Q2 2009

Coal mining contractor PT Saptaindra Sejati (SIS), a unit of PT Adaro Energy Tbk, planned to increase coal production to 22 million this year from 12 million last year, the company official has said.

SIS Director Andre J Mamuaya told Petromindo.Com last week that it also planned to raise coal production to 26.7 million next year, adding that it would maintain the company?s existing customers. ?Currently, there are no new customers,? he said.

SIS currently has seven coal mining contract with six coal firms, including PT Adaro Indonesia with a contractual volume of 46 million tons, PT Berau Coal (15.9 million tons), PT Borneo Indobara (7 million tons), PT Indomining (6.8 million tons), PT Interex Sacra Raya (4.2 million tons) and Sumber Kurnia Buana (2.7 million tons).

He also said that SIS delayed the plan to initial public offering (IPO) to the second quarter of next year as it is focusing on the IPO of its parent company, PT Adaro Energy.

Earlier reports said that the company would float 20 percent of its shares on the Indonesian stock exchange this year to raise US$300-$350 million fresh funds. (denny)