PT Harum Energy Tbk Allocates $470m to Acquire Coal Miner near East Kalimantan Operation
PT Harum Energy Tbk recently announced during their 2014 shareholder meeting that they are allocating $470 million to purchase a coal mining company located near their mining operation in East Kalimantan. This acquisition falls under the company’s plans for expansion this year.
Harum Energy is one of the leading thermal coal producers in Indonesia with integrated mining operations in East Kalimantan. The coal mining company is controlled by Indonesian businessman Kiki Barki. Through its subsidiaries and joint venture company, the Harum Energy operates three coal mines and a tug and barge operation.
The Company markets its coal to a diversified group of customers in various Asian countries, such as Japan, South Korea, Taiwan, China and India, under both multi-year contracts as well as spot contracts. The Company's customers include large coal-fired power generating and manufacturing companies located throughout Asia.
“We’ve already set aside the fund. We have our eyes on a mining company located close to our Harum mining operation in East Kalimantan,” said Ray Gunara, president director at Harum Energy, in Jakarta on Thursday.
The potential for the presently unnamed coal miner to produce at least 50 million metric tons per year is a primary factor as to why Harum Energy has selected this premium target for acquisition.
Gunara also reported that the Jakarta-based Harum Energy would use its internal cash of approximately $200 million and a $270 loan facility which it received last year for the acquisition plan.
In addition, Harum Energy already has $10 million worth of capital expenditure allocated for the company’s coal production equipment maintenance this year.
