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Thursday, 23 July 09
KEPCO BUYS 1.5% STAKE IN ADARO ENERGY FOR US$ 56.5M


WSJ reported that, state-run utility Korea Electric Power Corp., or Kepco, Thursday said it has acquired a 1.5% stake in Indonesian coal miner, PT Adaro Energy, for $56.5 million.

With the stake purchase, Kepco will be able to secure 3 million metric tons of soft coal annually, it said in a statement.

Last year, Kepco bought 64 million tons of soft coal from overseas, 40% of which was from Indonesia, it said.

Adaro Energy produced about 40 million tons of soft coal last year and plans to increase production to 80 million tons annually in 2015, Kepco said.

The latest stake purchase, which comes after buying a 20% stake in Canada's Denison Mines Corp. earlier this year, is expected to contribute to the stable supply of power generation fuel for Kepco's power units, it said.

The utility purchases electricity from its six power-generating units and resells it to users nationwide.

Source:WSJ



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