PT AKR Corporindo Tbk (AKRA) expects to produce coal in the first quarter of 2011. In a prospectus published today, AKR, via a subsidiary called PT Anugrah Karya Raya, manages 24,388 hectares of five coal concessions in North Barito, Kalimantan.
AKR acquired 87.5% stake in Anugrah Karya Raya at end of last year. The company plans to market its coal to China via its port in Guigang, China.
AKR has four main businesses, trading and distribution of chemical products and fuels, logistic, coal mining, and manufacturing.
In June, AKR channelled loan facility worth Rp60 billion to Anugrah Karya Raya. AKR charged 13.5% of annual interest rate on the fcility, maturing in 3 years. Anugrah will use the facility to acquire assets and working capital for itself and its subsidiaries in relation to thriving coal business.
Disclosure: No position at the stock mentioned above.
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