Ancora sets aside $30m for coal mine acquisition

PT Ancora Indonesia Resources Tbk has allocated up to Rp 260 billion (about US$30 million) to finance acquisition of two coal mines in East Kalimantan and South Sumatra, Investor Daily reported on Tuesday.

Ancora?s president director Dharma Djojonegoro said in Jakarta on Monday that the acquisition would be financed by bank loans. ?We are still seeking for the funding, but we are optimistic we will be able to obtain the funding before the year end,? he added.

Dharma said that the company intended to acquire coal mines with coal reserves of between 10 and 30 million tons. ?The mines should be in exploration stage,? he said. He, however, did not disclose the names of the mining companies which would be acquired by Ancora.

Ancora?s finance director Aulia M. Oemar earlier said that the company had received a commitment from a bank to provide $25 million loan. The fund will be used to partly acquire coal mining company PT Raja Kutai Bumi Makmur (RKBM), which operates a coal mine in East Kalimantan. A part of the funds will be also used to finance RKBM?s exploration and other mining activities. (*)