Update 1: United Tractors's unit acquires Kalimantan coal mines
Tuesday, March 2 2010 - 01:39 AM WIB
PT Pama Persada, a unit of IDX-listed heavy equipment distributor and miner PT United Tractors Tbk, has signed an agreement to buy 30 percent stake at Central Kalimantan coal miners PT Asmin Bara Bronang (ABB) and PT Asmin Bara Jaan (ABJ).
"Pama has signed Conditional Sales Purchase Agreement," United Tractors's corporate secretary Sara Loebis told Petromindo.com on Tuesday.
Pama will pay a total of US$40.1 million and Rp 75 million for the acquisition. It has made an advance payment totalling $11.6 million with the arrears to be paid later after all terms of aquistion have been agreed upon, she said.
"There isn't yet any final sales and purchase agreement (SPA) since there are still terms that have to agree upon. We don't know yet when the SPA will be signed," she said.
According to Petromindo.Com data, ABB would start coal production in October 2010 with production capacity of 1.5 MT in 2011 and 3.5 MT in 2012, while ABJ would start production in 2011. Both companies will have combined production capacity of 10 MTPA within the next few years. (denny)