ATPK Resources eyeing W. Sumatra coal mine

IDX-listed mining firm PT ATPK Resources plans to take over a coal mine in West Sumatra as part of the company?s intensive programs to further expand its coal mining operations, Kontan reported on Tuesday.

?We hope the takeover could be completed before the end of this year,? the company?s President Director Wasisto Budiharsoyo said in Jakarta on Monday. He explained that the company was currently conducting a due diligence in the West Sumatra coal mine.

He said that ATPK would need at least Rp 50 billion (1US$= Rp 9,280) to finance the acquisition of the coal mine which is estimated to be able to produce about 7,000 tons of high-grade coal a month.

According to him, about Rp 34.1 billion of the acquisition costs, would be financed by proceeds from the recent sales of the company?s assets, and the remainder would be obtained from external sources.

ATPK, through its 96.77 percent coal mining and trading unit PT. Modal Investasi Mineral (MIM) holds more than 76 million tons of coal resources in five projects, mostly located in Kalimantan

MIM plans to start coal production from its East Kalimantan mines in the last quarter of 2008, with initial production 40,000 ton per month from its Berau mine and another 20,000 per month from Sangatta mine. Other mines are still in exploration stage. (*)