Indonesian miner Borneo Lumbung in talks to sell 20% stake in coal unit

JAKARTA/SINGAPORE, Sept 19 (Reuters) - Indonesian coking coal miner PT Borneo Lumbung Energi & Metal is in talks with several parties, including South Korea's steel giant POSCO, to raise more than $500 million by selling an up to 20 percent stake in its operating unit, two sources said on Wednesday.

The company aims to complete the deal by the end of the year, a source with direct knowledge of the matter said.

POSCO confirmed that it was in early talks with the Indonesian company but declined to give further details.

Kenneth Allan, a director at Borneo confirmed that the company is open to sell up to 20 percent stake in PT Asmin Koalindo Tuhup, its sole coking coal operating unit, but declined to give any further details.