MAS holds mining permits on a 3,274 hectares coal mine in Berau, East Kalimantan with annual production of 692,000 metric tons, according to the company website. MAS, however, is contracting out the operation to mining contractor Pacific Prima Coal (PPC), a practice that was banned by a ministerial decree in 2012.
“About 97.75 percent of the proceeds, or Rp 1.04 trillion, will be used by the company to inject capital into MAS,” ATPK Resources said in a brief published in Investor Daily on Wednesday.
In turn, MAS will use the funds to takeover all PPC assets in its Berau mining operation and to pay taxes that incurred form the purchase, ATPK Resources said.
ATPK Resources will offer 4.8 billion new shares at Rp 220 a piece. Shareholders in possession of more than 10 shares by Dec. 4 will have the right to purchase 53 new shares. If shareholder do not buy in their ownership in the company will be diluted by up to 84 percent.
PPC is also acting as a standby buyer for ATPK Resources’ new shares.
Currently, DBS Vickers Securities Singapore owns 39.6 percent of ATPK Resources and the public owns 24.9 percent. Other shareholders include Trillion Markets (9.7 percent), Leisure Best (9.1 percent), Pershing (9.4 percent) and UOB Kay Hian (7.3 percent).
Coal production at Mega Alam Sejahtera is estimated to rise to 150,000 tons per month in the next few years from its current 58,000 tons, as the company develops infrastructure at the mining site.
Additional to MAS, ATPK Resources owns another coal mining unit: Sarana Mandiri Utama, which operates a mining permit over 2,000 hectares in Tana Tidung, East Kalimantan.
Sarana Mandiri has a coal production capacity of 40,000 tons to 50,000 tons per month, the company said.
In the first six months of this year, ATPK Resources booked Rp 255 billion in revenue, more than doubling its Rp 164 billion in revenue from a year earlier, citing increased production volume and a steady coal price.
The company posted a net income of Rp 14 billion in the January to June period, compared with its Rp 7 billion profit over the same period a year earlier.
Shares in the company rose 2.1 percent to Rp 240 on the Indonesia Stock Exchange on Wednesday.
source : The Jakarta Globe ( 24 Oct 2013 )