Antam allocates US$37 million for coal mining business

State owned general mining company PT Aneka Tambang (Antam) has established a new business unit and has also allocated about Rp 440 billion (around US$37 million) in investment funds to support the company?s expansion plan in the coal mining sector.

Antam?s corporate secretary Bimo Budi Satriyo said in Jakarta late last week that the investment funds would be used to acquire coal mines and to finance exploration activities.

He said that the investment funds for the coal mining expansion were part of the Rp 2.55 trillion allocated for the company?s 2009 capital expenditures for business expansion and diversification.

The expansion in the coal mining activities would be carried out both through acquisitions and developing the company?s own coal concession areas, Bimo said, adding that Antam had also established a new business unit PT Indonesia Coal Resources early this year to acquire potential coal mines.

?We have explored acquisition of a number of coal mines in Kalimantan,? he said. According to him, a coal mine which would be acquired should be able to produce at least 2 million tons of coal a year.

Antam?s Head of Corporate Strategic Development Han Widjajanto said earlier that Antam had received acquisition offers from about 15 coal mines, mostly located in Kalimantan, Jambi and Papua.

The main purpose of the expansion plan in coal mining activities is to provide coal supply for a coal-fired power plant Antam plans to build in the company?s nickel mining area in Pomalaa, Southeast Sulawesi, he said. (*)