Korean consortium purchases 30% stake in Kintap coal mine

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Korean consortium purchases 30% stake in Kintap coal mine

A Korean consortium led by state-run Korea Resources Corp. (Kores) has bought a 30 percent stake in Indonesia’s Kintap coal mine, industry sources said yesterday.

The stake purchase cost $30 million, with Kores taking control of 15 percent of the stakes. Consortium partners Posco Energy and Aju Industry Co. each took over 7.5 percent of the mine in Kalimantan.

Kores, which was set up to secure various raw materials to help fuel the national economy, said the latest deal pushes up Korean corporate ownership of the Kintap mine to 80 percent. At present, STX Corp. and Jein Corp. hold a combined 50 percent of the mine following a deal with Indoasia Cemerlang.

The Kintap mines produced roughly 1.34 million tons of bituminous coal last year, with output to be increased to 3 million tons in 2012.

Kores said the latest purchase pushes up the total amount of coal it can produce from Indonesia to 7.9 million tons, which can improve Korea’s ability to cope with sudden fluctuations in international fossil fuel prices.

Yonhap

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