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Tuesday, 24 June 14
INDONESIAN COAL MINER TARGETS RP 313 BILLION IPO

COALspot.com: Indonesian coal miner PT Mitrabara Adiperdana is aiming to raise up to Rp 313 billion to Rp 368 billion (approximately $26.133 million to $30.725 million) from an initial public offering next month.

The  company is expected to sell around 273.03 million shares, or 22 percent of its share, at a range of Rp.1,150-1,350.

Mitrabara, part of  PT Baramulti Sugih Sentosa group has a coal mine in Loreh, South Malinau District,  North Kalimantan. The total mining area is 1,930 hectares (ha) and 1,030 ha. According to market information coal from Milinau area contains high calorific value compared to other areas in north Kalimantan.

Sucorinvest Central Gani and Danareksa Sekuritas are acting as offering's underwriters.

According to media reports, Japanese energy company Idemitsu Kosan Co Ltd, has an option to buy an up to 27 percent stake in Mitrabara. The company is also planning to produce around 2.5 million tons of coal per annum and targeting Japan as its prime buyer for its coal. The company also believes that, the Japanese buyers will pay higher for their coal compare to buyer of other countries.

If the offering goes ahead, Mitrabara will be the first Indonesian coal miner to pursue an IPO in the last two years. The global coal prices have fallen significantly since 2012 and still there is no sign of recovery. Coal prices are still under pressure due to high output and fewer demand from emerging markets.

Coal analysts are believe coal prices will recover early next year from current levels.
(1 USD = Rp.11,977)



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