Cokal Mulls Future Options for Indonesian Coal Mine
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Indonesian coal project developer Cokal is running three separate negotiations that could see the company with a renewed takeover bid, merged with an ASX listed company or a key subsidiary listed on a Chinese stock exchange.
Cokal has interests in five projects in Central Kalimantan and one project which holds three exploration licenses in West Kalimantan.
Drawing Indonesian approval for the BBM mine to proceed was the catalyst that drew the interest from a number of potential strategic partners.
With tough times for metallurgical coal, developers and producers have had to innovate to add shareholder value.
Metallurgical coal or coking coal is used in the process of creating coke necessary for iron and steel-making.
PT Cakra Mineral Tbk’s offer to acquire the shares of Cokal lapsed in November 2015 although that company has since indicated it was actively taking steps to resolve issues that could see a fresh bid.
A second separate option is a potential merger with an ASX listed company. Due diligence has been undertaken and further clarity on that merger option is expected within a month.
Guangzhou China based BM Intelligence has proposed a third option which would involve Cokal floating its Singapore subsidiary, Cokal Holdings Pte-Ltd through a Cokal owned Chinese subsidiary on the Shanghai exchange to raise funds.
Source: (January 15, 2016) Proactive Investors
About Cokal
Cokal Limited is an ASX listed coal company.
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