Anglo American competes to acquire KPC & Arutmin
UK-based giant mining and natural resources company, Anglo American, is said to compete with Marubeni Corp in the acquisition of PT Bumi Resources shares in PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia.
"I think for KPC and Arutmin, the party everyone's focused on now is Anglo American. But how about the 51% local ownership requirement," an investment banker said last night.
Anglo American is a global leader in mining and natural resources. The company was formed in May 1999 through the combination of Anglo American Corporation of South Africa (AACSA) and Minorco. It has its primary listing on the London Stock Exchange and is majority owned by UK institutions.
Anglo American has interests in 16 base metal operations in seven countries, particularly in Brazil, Chile, Ireland, Peru, South Africa, and Venezuela.
In Indonesia, Anglo American's exploration milestones includes discovery of the Purnama gold deposit at Martabe (1998), discovery of Aisasjur gold deposit in 1997, and its formation this year of a strategic alliance with Austindo Resources (controlled by George Tahija) to explore in Papua.
But why KPC & Arutmin?
Well, Anglo American's coal interests are held through wholly owned Anglo Coal, one of the worlds largest private sector coal producers and exporters with total assets of US$2.5 billion. Anglo Coal is an international coal producer with mining operations in South Africa, Colombia, Venezuela and Australia. It produces thermal, PCI (pulverised coal injection) and metallurgical and coking coals for international customers in the Med-Atlantic and Indo-Pacific markets as well as local customers in South Africa and Australia.
Back to the question on 51% local ownership requirement, whoever would buy the shares, I would say the maximum amount that is 'safe' would be 49% in both KPC and Arutmin. But who want to spend US$2.5 billion without majority control? This is the question I still have to find the right answer.
KPC was owned by BP & Rio Tinto, while Arutmin was owned by BHP (Australia). All of these foreign investors, by law, should divest up to 51% shares in a certain period to local investors. That was the justification for the Bumi Resources acquisition on KPC and Arutmin. But now the case is in the reverse version. I'm not sure if government would allow that.
"I think for KPC and Arutmin, the party everyone's focused on now is Anglo American. But how about the 51% local ownership requirement," an investment banker said last night.
Anglo American is a global leader in mining and natural resources. The company was formed in May 1999 through the combination of Anglo American Corporation of South Africa (AACSA) and Minorco. It has its primary listing on the London Stock Exchange and is majority owned by UK institutions.
Anglo American has interests in 16 base metal operations in seven countries, particularly in Brazil, Chile, Ireland, Peru, South Africa, and Venezuela.
In Indonesia, Anglo American's exploration milestones includes discovery of the Purnama gold deposit at Martabe (1998), discovery of Aisasjur gold deposit in 1997, and its formation this year of a strategic alliance with Austindo Resources (controlled by George Tahija) to explore in Papua.
But why KPC & Arutmin?
Well, Anglo American's coal interests are held through wholly owned Anglo Coal, one of the worlds largest private sector coal producers and exporters with total assets of US$2.5 billion. Anglo Coal is an international coal producer with mining operations in South Africa, Colombia, Venezuela and Australia. It produces thermal, PCI (pulverised coal injection) and metallurgical and coking coals for international customers in the Med-Atlantic and Indo-Pacific markets as well as local customers in South Africa and Australia.
Back to the question on 51% local ownership requirement, whoever would buy the shares, I would say the maximum amount that is 'safe' would be 49% in both KPC and Arutmin. But who want to spend US$2.5 billion without majority control? This is the question I still have to find the right answer.
KPC was owned by BP & Rio Tinto, while Arutmin was owned by BHP (Australia). All of these foreign investors, by law, should divest up to 51% shares in a certain period to local investors. That was the justification for the Bumi Resources acquisition on KPC and Arutmin. But now the case is in the reverse version. I'm not sure if government would allow that.
Labels: Bumi Resources, COAL, MARUBENI
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posted by yosef at 10:57 PM
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