Dec 10, 2010

Krakatau Steel & Borneo in talks for coal

Indonesia's largest steel maker PT Krakatau Steel Tbk (KRAS) said on Thursday it is in talks with coking coal miner PT Borneo Lumbung Energi and Marunda Graha to help feed demand seen at 2.65 million of coal a year by 2014.
Krakatau Steel, as reported by Reuters, is also considering buying equity stakes in Borneo Lumbung or Marunda to secure the supply.
A source close to the deal said one of Borneo's executives in the last three days has intensively met Krakatau Steel's top executives regarding to the matter. 
When Borneo listed shares at Indonesia Stock Exchange, it was mentioned that Borneo has talked with Krakatau Steel to supply coking coal, especially for newly joint venture company with Posco. 

Disclosure: No position at the stock mentioned above. 
 
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