Trade Maritime planning to enter coal business

IDX-listed shipping line company PT Trada Maritime Tbk has unveiled plans to enter integrated coal business that is mining management, transportation and trading by next year, for which the company would need to reap between US$400-600 million from a planned right issue.

?Trada Maritime has appointed us as its financial advisory. The company (Trada) plans the right issue in early next year. It is in line with the (recent) signing of Memorandum of Understanding (MoU) of convertible bond between Trada Maritime and Zakia Limited,? President Director HD Capital Antony Kristanto said as quoted by Investor Daily newspaper.

Antony said that the Trada Maritime needed at least between $400 and $600 million for the company to expand into coal business.

Trada signed MoU with Zakia Limited on convertible bond issued by PT Awesome Coal.

Zakia Ltd is a company established in United Arab Emirates (UAE), while PT Awesome Coal is an Indonesian company. Awesome Coal holds 99.99 percent stakes at PT Batu Kaya Berkat, which in return owns 99.89 percent of PT Gunung Bara Utama

Trada Maritime would control the coal concession of 5,530 hectares in Mantar, Damai and West Kutai - all in East Kalimantan. (*)