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ublicly listed petroleum and chemical products distributor PT AKR Corporindo (AKRA) is finalizing the acquisition of PT Jabal Nor’s 26 percent stake to increase the company’s ownership in the coal haul road and terminal operator in Tapin, East Kalimantan, a company executive said.

“We are in due diligent and several other processes and expect to finish the acquisition in May or June,” AKRA director Suresh Vembu said after his company’s annual and extraordinary meeting on Tuesday.

Suresh said that AKRA would increase its ownership in Jabal Nor by 26 percent to 59.4 percent from the current 33.5 percent. In December, AKRA, through its subsidiary PT Anugrah Karya Raya, acquired a 33.5 percent stake, or 48,575 shares, in Jabal Nor in a deal worth Rp 24.29 billion.

As with the previous transaction, AKRA will purchase Jabal Nor’s shares from property developer businessman Lukman Purnomosidi and businessman Aryadi Nor. Both hold 32.76 percent, or 47,500 shares, in Jabal Nor, at present. The remaining 0.98 percent or 1,425 shares, is held by PT Daya Kalimantan Baru

“We will announce the valuation when we finish the acquisition. Funds for the acquisition will come from our internal cash,” AKRA president director Haryanto Adikoesoemo said.

AKRA’s cash and cash equivalent were Rp 1.31 trillion at the end of March.

Jabal Nor, based in Tapin, South Kalimantan, provides infrastructure facilities for mining companies. The company is developing an integrated coal terminal providing hauling road and coal port terminal, which is expected to support coal mining activities in other areas in South Kalimantan: Banjar and Hulu Sungai Selatan.

Jabal Nor’s project will support AKR Corporindo’s coal mining operations because the local administration has prohibited coal miners and crude palm oil (CPO) producers from using public roads to transport their products.

AKRA currently has mining rights — locally known as Kuasa Pertambangan (KP) — in five areas of 24,388 hectares in total in South Barito district, East Kalimantan.

According to Haryanto, one mining area has started production and has exported 54,000 metric tons to India and will deliver 62,000 metric tons this month to China. The mining site has coal reserves of 12 million metric tons.

“We hope that coal production will reach 1 million tons this year. We have secured sales contracts for about 70 percent of the production with international traders,” Haryanto said.

In the other four mining areas, AKRA said that it would develop infrastructure to support its activities. The company is allocating Rp 350 billion to Rp 400 billion out of total capital expenditure of up to Rp 1.2 trillion to support the development.

AKRA, according to Haryanto, is also allocating Rp 600 billion to Rp 800 billion to support development in its core business of distributing petroleum and chemical products. The projects include the development of several terminals and a jetty in Surabaya as well as purchasing new vessels.