ADARO Acquires Balangan Coal Project
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PT Adaro Energy Tbk, the country’s second largest coal miner, announces that it has acquired 75% stake of the Balangan coal project worth Rp 3.9 billion in Balangan, South Kalimantan.
The Company, through its subsidiary PT Alam Tri Abadi (ATA), had signed a share purchase agreement in order to acquire 75% of the three companies that form the Balangan coal project, it said in its quarterly activities report.
“The enterprise value of the Balangan transaction is US$ 30.4 million,” Adaro’s Head of Investor Relation Cameron Tough said in the report.
The Balangan coal project consisted of three companies namely PT Paramitha Cipta Sarana (PCS), PT Semesta Centramas (SCM), and PT Laskar Semesta Alam (LSA).
After the acquisition, Adaro holds 75% interest in Balangan while the remaining 25% is owned by local businessmen.
This acquisition is aimed to increase the Company’s reserves and diversify its assets, location, and permits, according to the report.
Balangan, which is located 11 km southeast of Adaro Indonesia’s concession, owns coal licenses covering an area of 7,500 ha. It has estimated JORC compliant coal resources of 172.3 million per end of 2012.
The Company said that the coal characteristics at Balangan are similar to Adaro Indonesia’s product, Envirocoal.
Adaro hopes that it can start production from Balangan project this year. It targets its production to reach 8 million tons per year.