ATPK Resources seeks funds for coal unit

Mining company ATPK Resources is seeking to raise US$ 97.8 million (Rp 1.07 trillion) from a stock offering at the end of this year to finance an acquisition plan at one of its coal mining units.

The Mega Alam Sejahtera (MAS) unit holds mining permits on a 3274 hectares coal mine in Berau, East Kalimantan with annual production of 692 000 t. MAS is contracting out the operation to mining contractor Pacific Prima Coal (PPC).

Approximately 97.75% of the proceeds raised will be used by the company to inject capital into the coal project. In turn, MAS will use the funds to takeover all PPC assets in its Berau mining operation, and to pay taxes that incurred from the purchase.

ATPK Resources will offer 4.8 billion new shares at Rp 220 per share. Currently, DBS Vickers Securities Singapore owns 39.6% of ATPK Resources and the public owns 24.9%. Other shareholders include Trillion Markets (9.7%), Leisure Best (9.1%), Pershing (9.4%) and UOB Kay Hian (7.3%).

Coal production at Mega Alam Sejahtera is estimated to rise to 150 000 tpm over the next few years from its current 58 000 t, as the company develops infrastructure at the mining site.

Edited from various sources by Katie Woodward

Read the article online at: https://www.worldcoal.com/coal/24102013/atpk_resources_seeks_funds_for_coal_unit_181/