Egco takes 40% stake in indonesian coal mine
Electricity Generating (Egco Group), Thailand's first independent power producer, announced investment in an Indonesian coal-mine project by acquiring a 40-per-cent ownership interest in Manambang Muara Enim project ("MME") for US$197 million (Bt6.2 bil
Sahust Pratuknukul, Egco Group president, said yesterday that the company had signed the Share Purchase Agreement to acquire a 40 per cent ownership interest in the MME project, and will become a partner of Indonesian company PT Alam Karya Nusantara. The total investment for this project is $197 million, which accounts for 5.98 per cent of Egco Group’s total assets.
MME is an open-pit coal mine located in Muara Enim Regency, South Sumatra, with a concession licence from the government for 28 years – from March 2010 to March 2038. The operating area covers 1,587 hectares. MME has been operating since March 2010.
"The investment is in line with Egco Group’s strategic plan to expand our business towards the integrated energy business to enhance stability of fuel supply in the long run. Additionally, it will strengthen Egco Group’s presence in Indonesia and we expect it should provide opportunities for growth in the future," he said.
PT Alam Karya Nusantara is an Indonesian company with an established portfolio of coal mining concessions in Indonesia. Starting in 2010, it has been delivering coal to both domestic and export markets. Its South Sumatra coal concession is well positioned to serve growing coal markets such as China, India, Southeast Asia and other Asian countries.
