SMR Utama to acquire mining services firm

By Ruli Setiawan

IDX-listed manganese mining firm PT SMR Utama (SMRU) Tbk plans to acquire 99.99 percent shares in mining services firm PT Ricobana in a transaction worth Rp 1.02 trillion.

The company said in a filing with the Indonesia Stock Exchange on Monday that the funds to finance the planned acquisition will come from a Rp 1.05 trillion rights issue to be held next month.

Ricobana provides open pit mining services for coal producers in Indonesia.

SMRU is a mining and natural resources company currently operating a manganese mine site in East Nusa Tenggara Province, Indonesia. The company holds a mining permit (Ijin Usaha Pertambangan - Operasi Produksi / IUP - OP) through its subsidiary PT Soe Makmur Resources (PT SMR). The mining permit covers an area of 4.550 ha in the region of Timor Tengah Selatan about 150 km North East of Kupang. East Nusa Tenggara has a huge deposit of high grade manganese ores.

Editing by Reiner Simanjuntak