Apr 28, 2011

Harum eyes Rp2.58 trio coal takeover

PT Harum Energy Tbk (HRUM), that is controlled by Indonesian tycoon Kiki Barki, is poised to spend Rp2.58 trillion for takeover of coal mining companies
"We have to realize acquisition of coal companies this year," said Harum President Director Ray Antonio Gunara as quoted by Kontan daily today.
According to him, Harum is focusing on acquisition of coal mining with 5,000 kcalories. "We aim to buy coal mining in East Kalimantan as the company has rolled out infrastructure for coal mining in these area."
To support the acquisition, the company has Rp1.03 trillion of internally generated cash flow and Rp1.56 trillion loan facility obtained from Bank DBS Ltd Singapore. 
Harum, with coal reserves of 112.6 million tons, targets 10.4 million tons output this year, an increase from 7.4 million tons last year. The company owns three subsidiaries dubbed PT Santan Batubara, a joint venture with subsidiary of PT Indika Energy Tbk, PT Mahakam Sumber Jaya, and PT Tambang Batubara Harum.
"Production from Tambang Batubara Harum may reach 500,000 tons," Ray said.
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Disclosure: No position at the stock mentioned above.

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