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Monday, 16 March 09
ADARO TO BOLSTER SUPPLY CHAIN THROUGH ACQUISITIONS - THE JAKARTA POST


PT Adaro Energy Tbk, Indonesia's second-largest coal producer, plans to acquire a coal barging and transshipment company to improve its supply chain, the company said in a statement.

Adaro did not identify companies being targeted for acquisition, but said negotiations were taking place and an announcement was planned in the coming weeks.

“As our coal mine is located quite far inland, it is imperative that we acquire direct control of inland waterway transportation and ship loading,” said Ah Hoo Chia, Adaro’s operations director.

“We already control a portion of the mining and overland transportation and own a port facility; now we can be completely linked from pit to port.”

The firm said it expected the acquisition value would not exceed $100 million and would be funded from existing cash and operating cash flows.

‘Now we can be completely linked from pit to port’ Ah Hoo Chia, operations director, PT Adaro Energy Tbk With the planned acquisition, the firm said it expected additional capital expenditure on top of the $120 million capital expenditure planned for this year. To read more The Jakarta Globe 



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