ABM hopes to conclude coal acquisition this year

IDX-listed integrated coal mining firm PT ABM Investama Tbk hopes to be able to conclude this year part of its coal mine acquisition plan, Bisnis Indonesia reported on Wednesday.

The paper quoted ABM Finance Director Adrian Sjamsul as saying that following the recent issuance of a US$300 million global bond to repay debts, the company can now focus on realizing the acquisition plan, which currently is at the stage of due diligence process.

?Hopefully this year part of the acquisition plan can be concluded,? he said, adding that the company was looking to acquire coal mines having calorific value of more than 4,000 kcal/kg in a bid to increase reserves of the company?s medium-rank coal.

ABM currently has coal reserves of around 300 million tons, but about 90 percent of which are classified as low rank coal, and the remaining 10 percent, or around 30 million tons as medium-rank coal, which is set to deplete in five years.

ABM has allocated US$100 million-$200 million for the acquisition. (*)