July 18, 2008

Indonesian Steelmaker Likely to Buy Overseas Iron Ore Mines

Indonesian steelmaker likely to buy overseas iron ore mines

JAKARTA, July 17 (Xinhua) -- Indonesian largest state-owned steelmaker PT Krakatau Steel planned to buy stakes in overseas iron ore producers to secure supplies, the Jakarta Post reported Thursday.

"Prices of iron pellets from Brazil, Chile, India and Bahrain have almost doubled this year," the newspaper quoted Krakatau's President Fazwar Bujang as saying.

During a preparation of an initial public offering, Krakatau recognized the necessity of mine acquisitions.

Krakatau has been in talks with potential targets and an early finding shows mines in Australia.

The company's profit amounted to 750 billion rupiah (82 million U.S. dollar) in the first half year, four-fifths of the initial full- year target of 850 billion rupiah.

Krakatau now estimated its net income will rise to between 1 trillion rupiah (108 million U.S. dollar) and 1.2 trillion rupiah (130 million U.S. dollar) in 2008.

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