Antam postpones coal acquisition plan

State owned mining company PT Aneka Tambang has postponed its plan to acquire a coal mine in Kalimantan amid uncertainties in coal prices in the world market, Kontan reported on Tuesday.

Previously Antam, through its subsidiary PT Indonesia Coal Resource, had reached an initial agreement to take over a coal mine with coal reserves of about 30 million tons for about US$80 million.

?But the acquisition plan could not be realized at this time because the sharp drop in coal prices in the world market,? the president director of PT Indonesia Coal.

As reported the coal price has dropped to between $40 to $80 per ton from as high as $120 per ton last year due to decline in the demand as the result in the global economic slowdown. ?With the sharp drop in coal prices, the acquisition is no longer economically feasible,? he added.

At present, PT Indonesia Coal operates a coal mine in Sarolangun regency, Jambi. During the period between January to September, the company only produced 433,000 tons. Until May, the company sold its coal at average price of $40 per ton.(*)