Ancora to take over coal miner Raja Kutai IDR210 billion

AKARTA: Energy company PT Ancora Indonesia Resources Tbk (OKAS) will take over 50.6% holding in coal miner PT Raja Kutai Baru Makmur worth around IDR100 billion-IDR210 billion.President Director of Ancora Resources Dharma Djojonegoro said the purchase of coal mine was intended as a diversification of the company business. The acquisition will be funded largely from internal cash, and the rest will be derived from external cash."About 80% will be derived from our internal cash and the rest will be taken from external cash. It is intended to keep our gearing ratio for not going too high," he said, today.Raja Kutai is the mining permit holder of the 8,500 hectares mining area. From that area, only 550 hectares had been explored with the production of 30.000 tons to 50,000 tons per month.According to Dharma, Raja Kutai will be purchased from the affiliated company, PT Ancora Energy. To continue the plan, the company will seek shareholders' approval in extraordinary general meeting (EGM) of shareholders.Beyond that plan, Ancora Resources also plans to re-acquire mining and oil and gas company. It is estimated that corporate action can be implemented within the next two years."For now we are focusing on acquisition of Raja Kutai, and we are still focusing on mining sector than oil and gas business," said Dharma.To support its business expansion, Ancora Resources will spend capital expenditure between US$20 million-US$30 million. Most of the capital expenditure will be absorbed by its subsidiary, PT Multi Nitrotama Chemistry as much as US$20 million."The funds for our capital expenditure are largely supplied by the banking loans, such as Bank Permata. For the acquisition of Raja Kutai, we allocate US$5 million to US$10 million," said Dharma. (t03/wiw)

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