Three bidders of Berau Coal?s 60% stake withdraw

Three of companies which joined a tender to purchase PT United Tractors?s 60 percent stake in East Kalimantan-based coal producer PT Berau Coal have withdrawn from further bidding process, according to an industry source

Budi Setiadharma, Vice President of PT Astra International Tbk, said in Jakarta over the weekend that the three companies dropped their bids shortly after their completed their due diligence audit on the coal-mining firm.

The three companies; Anglo-Australian resource giant BHP Billiton, Glencore Australia Coal and state owned coal mining company PT Bukit Asam, which conducted their due diligence audit during the period between January 16 and February 22 this year stated some reasons behind their withdrawal, he told Bisnis Indonesia. But Budi refused to unveil them.

PT United Tractors, which is 50 percent owned by Astra International, plans to divest its 60 percent ownership in the East Kalimantan-based coal mining operation as part of its business consolidation measure.

Budi said that several investors mostly foreign companies had recently expressed their interest to join the bidding following the withdrawal of three companies. One of the companies came from Australia, he said, but he refused to unveil the name.

Earlier, an executive from United Tractors said that the tender process was scheduled to be completed in March this year.

Berau Coal operates around 121,000 hectare mining sites in Berau regency, East Kalimantan. Last year, the company produced around 6.7 million tons of coal.

Aside from United Tractors, Berau Coal is 30 percent owned by Armadian Tritunggal and 10 percent by Japan trading powerhouse Nissho Iwai. (*)