Thailand?s EGCO Group acquires coal mine in S. Sumatra

By Romel S. Gurky

Thailand?s first Independent Power Producer, Electricity Generating Public Company Limited or EGCO Group announced that it has acquired a 40 percent ownership of Manambang Muara Enim (MME) coal mine project at US$197 million.

Sahust Pratuknukul, President of EGCO Group said that the company had signed the Share Purchase Agreement to acquire 40 percent interest in the MME project, and will become partner of Indonesian company PT Alam Karya Nusantara.

MME is open-pit coal mine located in Muara Enim Regency, South Sumatra holding concession license for 28 years starting from March 2010 to March 2038. The operating area covers 1,587 hectares. MME has been in operation since March 2010.

?The investment is in line with EGCO Group's strategic plan to expand our business towards the integrated energy business to enhance the stability of fuel supply in the long run. Additionally, it will strengthen EGCO Group?s presence in Indonesia and we expect it should provide opportunities for growth in the future,? Sahust said in the statement.

PT Alam Karya Nusantara is Indonesian company that has established portfolio of coal mining concession in Indonesia. Starting 2010, it has been delivering coal to both domestic and export markets. Its South Sumatera coal concession is well positioned to serve growing coal markets such as China, India, Southeast Asia and other Asian countries.

Editing by Adianto P. Simamora