Goldchild Global Trade Ltd, the Asia focussed commodity trading house in coal and minerals announces that its sister company PT Goldchild Integritas Abadi (Group) a B2B coal trading platform company, has signed a Conditional Sale & Purchase Agreement to sell 60% shares to PT Inovisi Infracom Tbk, a public listed company in Indonesia for estimated US$47 million by issuing Convertible Promissory Note or "CPN". PT Goldchild Integritas Abadi (Group) subsidiaries own both coal trading and turn key project management business, which having combined extraction rights to estimated 110 million tonnes coal reserves in Indonesia, with further commitment to secure 200 million tonnes reserves within next 2 years. The secured supply will ensure that Coal Index, the commodity B2B trading platform has enough trading business to become world class coal electronic trading platform, the first in the world from Indonesia. The Details of the deal were not mentioned. The transaction is expected to complete by end of 2010.
Electronic transaction infrastructure player Inovisi Infracom had recently extended the business focus from servicing Telecommunication & IT industries to Oil & Gas and Coal & Minerals industries, a new mile stone towards global e-commerce play. The acquisition is expected to add estimated US$112 million and US$ 248 million turnover to parent company Inovisi Infracom for year 2011 and 2012 respectively. "Having just 5% of estimated US$13 billion coal transaction per year will give us US$650 million turnover, and it's just the beginning. Someone technology savvy has to provide the infrastructure!", commented Inovisi Infracom spokes person. Major buyers of coal & minerals from Indonesia includes China, India, South Korea, Japan, Malaysia and Taiwan.
Global coal industry where mostly traded through conventional business method such as phone, fax, email, face to face or basic networking. Major B2B e-commerce portal such as Alibaba.com, a Hong Kong listed US$12 billion company, and NASDAQ listed Globalsources.com, are among the conventional channels to match between buyers and sellers. Inovisi Infracom among the global players in B2B e-commerce market place has recently attracted both coal mine operators and traders speculation to provide e-commerce services for the industry, especially in Indonesia.
Coal production in Indonesia is expected to decrease 20 percent this year from earlier projection of 254 million ton due to heavy rain fall. The first half of 2010 have seen coal production surpass 115 million tonnes. However, market traders believe that the commodity market especially coal or "batu bara" is still bullish. "Indonesia commodity will be bullish until next year," according to President Director PT Ciptadana Securities, Ferry Budiman Tanja, in Jakarta, 6 October 2010.
The optimism will still attract new business to coal industry, as it will encourage both coal mine owners and producers in Indonesia to raise more fund from capital market. Some of the recent IPO includes PT Berau Coal Energy Tbk and PT Harum Energy Tbk, both raised estimated US$140 million and US$110 million respectively.
Based on data of the Association of Indonesia Coal Mining, total coal production in Indonesia in 2009 reached 193.98 million tonnes. The national coal production keeps increasing. In 2008, the national coal production was only 175.3 million tonnes compared to 2007 at 148.8 million tonnes. Of the the said amount, at least 150 million tonnes were exported.
East Kalimantan is the province having the highest coal production at 112.7 million tonnes; Kalimantan follows at 69.7 million tonnes; Bengkulu at 22.7 million tonnes; and South Sumatra, 11.4 million tonnes. The top contractors in the coal mining business include PT Bumi Resources Tbk through PT Kaltim Prima Coal with 38.1 million tonnes of production in 2009 while PT Arutmin Indonesia was 19.29 million tonnes of production. Furthermore, PT Adaro Indonesia produced 39.9 million tonnes; PT Kideco Jaya Agung, 24.9 million tonnes; PT Berau Coal, 14.3 million tonnes; PT Tambang Batubara Bukit Asam Tbk, 11.4 million tonnes.
Weeks earlier, clarifying to the media on the speculation by local industry where the company has secured several coal mines in South Kalimantan, the Indonesia investment company refused to confirm the business nor material details of the venture. However, Inovisi Infracom did not deny the possibility of using the company investment arm and B2B e-commerce system to expand into coal B2B business in the near future, including trading, operating or owning coal mine projects. "Coal is by far among the top 10 traded commodities in Indonesia, we cannot ignore the buyers and sellers calling and business request!", commented Inovisi Infracom spokes person. Further more, the company does have plan to allocate US$40m in the near future to venture into the B2B e-commerce business which covers Oil & Gas storage business. Other trades are just an extension of the company infrastructure.
About Inovisi Infracom
PT Inovisi Infracom (inovisi.com) is a fully integrated Mobile IT Infrastructure Provider, as well as diversified investment holding company in telecommunication, mobile Internet, media and e-commerce businesses. The company builds infrastructure and unload bandwidth for Telecommunication Industry to include basic solution from young telecommunication operators such as MVNO system, up to establish operators who need to boost and optimize VAS and improve ARPU, especially on mobile internet. Inovisi provides product(s) and service(s) which enables its’ customers to engage and get involved in the mobile business via connecting to the mobile telecommunication network and providing various services to serve the general public. Inovisi’s services serves to improved customer experience (faster access), boost transaction success rate, and increase application reliability. Inovisi’s services include the system design, rental or outsourcing and also selling of hardware, software and connectivity to its customers. Inovisi investment portfolio includes telecommunication infrastructure, social networking and communications, e-payment solutions, and online marketplaces. Company E-commerce recently extended into oil & gas, coal & mineral, industrial products and services. Investment division involves in project financing, IT seed and investment capital as well as corporate M&A activities.
About Goldchild Integritas Abadi
PT Goldchild Integritas Abadi (Group) is a trading portal having B2B e-commerce transaction platform matching both buyers and sellers of commodities such as coal, minerals and natural resources. The Coal Index platform shall quote instant buyers and sellers price, specifications, suppliers and buyers ratings and trade records for east of reference. The business tools which matches transaction deals from quotation, specification, bank facilities, payment, shipping and logistic tracking, are truly end-to-end business-to-business trading infrastructure for coal industry. Despite the benefit of time saving by using the electronic system, the business is ran by professional traders and industry specialist on the day to day operation, having extensive knowledge in coal business. The company goal is to be a world class coal B2B trading platform within next 3 years. The company is a co-branded technology outfit specifically focussed in Indonesia coal business. The company technology is supported by Goldchild Global Trade Ltd, a global commodity trading house in Hong Kong.