Jakarta, August 23rd, 2011 –
PT Adaro Energy Tbk (IDX: ADRO) is pleased to
announce that on August 19th, 2011, PT Alam Tri Abadi, a wholly owned subsidiary
of PT Adaro Energy Tbk, signed a share purchase agreement to acquire a 75% stake
of PT Mustika Indah Permai ("MIP") from Elite Rich Investment Limited for
US$222.5 million.
MIP is a coal mining company developing a greenfield coal project in South Sumatra.
MIP holds a mining permit, known in Indonesian as an IUP, which was granted in
April 2010 for a period of twenty years. The project covers an area of approximately
2,000 hectares.
Adaro Energy’s President Director, Mr. Garibaldi Thohir said, “our investment in
MIP is part of our drive to create sustainable value from Indonesian coal and achieve
our vision to become a leading Indonesian mining and energy group.”
MIP is one of a number of acquisitions opportunities that, together with organic
growth, will help Adaro Energy to achieve 80 million tonnes of production in the
medium term.
Adaro Energy’s advisors and engineers visited the area in November 2010 and
subsequently carried out a geological and drilling program. Following these and other
announce that on August 19th, 2011, PT Alam Tri Abadi, a wholly owned subsidiary
of PT Adaro Energy Tbk, signed a share purchase agreement to acquire a 75% stake
of PT Mustika Indah Permai ("MIP") from Elite Rich Investment Limited for
US$222.5 million.
MIP is a coal mining company developing a greenfield coal project in South Sumatra.
MIP holds a mining permit, known in Indonesian as an IUP, which was granted in
April 2010 for a period of twenty years. The project covers an area of approximately
2,000 hectares.
Adaro Energy’s President Director, Mr. Garibaldi Thohir said, “our investment in
MIP is part of our drive to create sustainable value from Indonesian coal and achieve
our vision to become a leading Indonesian mining and energy group.”
MIP is one of a number of acquisitions opportunities that, together with organic
growth, will help Adaro Energy to achieve 80 million tonnes of production in the
medium term.
Adaro Energy’s advisors and engineers visited the area in November 2010 and
subsequently carried out a geological and drilling program. Following these and other
detailed studies, Adaro Energy decided to pursue a majority ownership in MIP.
Adaro Energy has evaluated the geological information available for MIP and
considers that there is significant open cut coal mining potential.
The coal geology at MIP was sufficiently uniform. The structure, thickness and
quality of the coal seams were considered well enough defined by the density of drill
holes that AE was confident to proceed with the purchase of this potential coal area,
even though some incremental technical work is still required before an official
statement of Coal Resources and Reserves can be made.
Marston, an international mining consultant, performed the engineering studies of
coal potential on which the valuation was based. Adaro Energy also completed a
series of due diligence drill holes to confirm the structure thickness and quality of the
potentially mineable coal seams before completing the purchase.
The additional drilling and coal analysis required to completely meet JORC standards
is planned over the next two months; after which, a JORC compliant statement of
Resources and Reserves will be issued.
coal potential on which the valuation was based. Adaro Energy also completed a
series of due diligence drill holes to confirm the structure thickness and quality of the
potentially mineable coal seams before completing the purchase.
The additional drilling and coal analysis required to completely meet JORC standards
is planned over the next two months; after which, a JORC compliant statement of
Resources and Reserves will be issued.