Jul 12, 2011

Borneo to supply coking coal to KRAS

Hard coking coal miner PT Borneo Lumbung Energi Tbk (BORN), that is controlled by businessman and former auditor Samin Tan, has reached agreement to supply coking coal for blast furnace facilities which will be constructed by the state-controlled PT Krakatau Steel Tbk (KRAS). suply
There is no agreement has been signed by Borneo and Krakatau Steel. But, as quoted by Kontan daily, there is informal agreement that Borneo will supply coking coal to the facilities. Both companies expect to sign the agreement when the facilities have been completed.
According to the plan, the furnace blast facilities will be accomplished in 2014. With 1.2 million tons of production capacity, the facilities will require 900,000 tons coking coal a year.
 
Disclosure: No position at the stock mentioned above.

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