November 1, 2011 by Ben Scent
Kumai Energy, which is exploring for coal in Mongolia and Indonesia, will seek to raise AUD 7m in an initial public offering on the Australian Securities Exchange, a source familiar with the situation said. The company mandated CPS Securities to arrange the listing, the source said. It aims to hit the market in December, he added. Kumai Energy owns a 25% stake in the Nuurst Khotgor coal exploration project in Mongolia. It will earn a stake of up to 60% under an earn-in agreement with its joint venture partner, Asia Pacific Investment Partners. It has also signed an agreement to buy a 51% stake in PT Prima Nusa, which is exploring for coal in central Sumatra in Indonesia. The company has also agreed to rehabilitate the Arantiga mine in southwestern Sumatra, where it will eventually earn a 60% stake. The mine was started in 2007 but was shut down amid legal disputes with its contractor, according to Kumai Energy’s website. Kumai Energy’s shareholders include Singapore-based investment firm Redhill Partners.