Alam Karya wants to buy mines

By Hiski Darmayana

PT Alam Karya Unggul Tbk, a mining contractor, wants to expand its business by acquiring mining concessions.

?We have yet to decide whether to buy a coal concession or mineral concession,? Director Steven Tirtawidjaja told Petromindo.com on Tuesday.

Steven said the firm has set several criteria for the acquisition: good asset, good legality and good partner.

By ?good asset?, the firm means the concession it would acquire must have proven deposits. ?For instance, the deposit should have been proven under JORC standard. We shall not buy concessions with doubtful deposit,? he said.

By ?good legality?, the firm means the concession must already have a clear and clean status. The concession should have been cleared of problems related to overlapping lands and licensing.

By ?good partner?, the firm means the concession owners sell shares in the concession at affordable prices, he said.

Alam Karya was initially engaged in plastic packaging business. But in August this year, the firm entered mining industry as service provider by acquiring PT Borneo Mining Kontraktor, a company which is focused on leasing heavy equipment to coal mining companies.

Editing by Johannes Simbolon