Astra eyeing to enter mining sector

Indonesia?s top conglomerate group PT. Astra International Tbk. is considering to expand its business to mining sector within the next two or thee years, the company?s top executive said.

The company?s president Budi Setiadharma was quoted by Bisnis Indonesia daily said that despite the plan, thus far Astra had not set up clear strategy to enter the business.

He told the daily that Astra could enter into coal, gold, copper or nickel mining. He said Astra would likely enter mining business through acquisition of existing companies, which have economic reserves. ?We will hire mining consultants to define our strategy and to conduct feasibility studies,? he said.

Astra had already had grip in mining support industry through its mining contractor subsidiary PT. Pama Persada Nusantara, which is currently the country?s top coal contractor. Astra?s other subsidiary PT. United Tractors (UT) is significant supplier of mining heavy equipments.

Astra, through UT, had just sold its 60 percent stake in East Kalimantan coal miner PT. Berau Coal. (*)