Altura Mining will spin-off its coal assets, which include stakes in two Indonesian coal mining projects, into a new company, Newco, that will be listed on the Singapore exchange with an initial public offering in early 2015. Newco will have a new board and Altura, which will be a controlling shareholder, is expected to hold two of the five board positions, including the chairman’s role.
ASX-listed Altura holds a one-third stake in the Delta coal mine in East Kalimantan and a 70% stake in the Tabalong coal project in South Kalimantan. Altura and its partners plan to inject 100% of Delta Coal and a minimum of 70% of Tabalong Coal into Newco.
The IPO launch of Newco is proposed for early 2015, subject to SCX-ST Catalist approval. A separate SGX listing of Newco together with funds raised as part of the listing will allow for development of Tabalong through to production, progression of exploration for both projects, and strengthening of the balance sheet of the producing Delta mine.
Altura believes the consolidation of its coal assets into a separate coal focused entity based in Singapore will allow for recognition of Altura’s investment in these Indonesian copal assets, provide a platform to build on the existing Delta Coal business and give management the financial resources required for the development and further exploration of the Tabalong Coal project.
Altura also has a coal exploration tenement at Catanduanes in the Philippines as well as iron ore, lithium, uranium, base metals and precious metals prospects in Australia.