IDX-listed Indika Energy acquires additional stake in coal miner

Photo: Indika Energy website

Indonesia’s Indika Energy has bought an additional stake in coal mining company Multi Tambangjaya Utama (MTU), according to an IDX filing.

Indika Capital bought 2.62 million shares, equivalent to a 15 per cent stake in MTU, from Prime Empire Investment. The total consideration for the transaction, completed on July 17, was $9.9 million.

Following the acquisition, Indika Energy owns 100 per cent of MTU. It previously held an 85 per cent stake through a subsidiary, Indika Indonesia Resources.

Indika Energy had acquired MTU, along with the marketing rights for its coal production, in March 2012 for $132 million, according to local media reports. The seller was International Coal Trading Limited.

MTU is a third-generation coal contract of work (CCoW) that owns high-rank bituminous thermal and coking coal located in Central Kalimantan Province, according to Indika Energy’s website. Its total concession area is 24,970 hectares.

MTU has developed coal hauling roads with a capacity of 3 million tons per year and a barge port with a capacity of 5 million tons per year. The company started its first production in October 2016 and produced a total of 1.2 million tons of coal in 2018.

According to Indika Energy’s Q1 2019 report, MTU had a total asset value of $69.4 million.