Bhakti Investama acquires more Sumatra coal mines

Indonesian listed diversified company PT Bhakti Investama Tbk has acquired seven more coal mines in South Sumatra and Jambi, a company director said on Wednesday.

Budiono told Petromindo.Com, the company has signed sale purchase agreement(s) (SPA) with undisclosed seller(s). The company will form another coal subsidiary to develop the mines, he said.

The coal mines include four located in Ogan Komering Ilir regency, South Sumatra and three in Jambi, he said, without specifying the original owner(s) of the mines and whether the mines were owned by one or more companies.

In May this year, its coal unit PT Bhakti Coal Resources (BCR) signed a Sales & purchase Agreement with PT Titan Mining Resources Investment (TMRI) on May 5 to acquire a total of eight coal concessions covering 92,000 hectares of land in Musi Banyuasin Regency, South of Sumatra.

The coal concessions comprises one producing concession operated by PT Muba Coal (PMC) and seven exploration concessions. PMC's production will be increased to 3 million tons per year in 2011 after the construction of port and road infrastructure that is planned to be completed this year, the company said on May 7.

Budiono also said that the company has signed SPA to acquire a 51 percent stake in East Kalimantan-based coal miner PT. Nuansacipta Coal Investment (NCI).

NCI has been producing coal and is expected to produce around 200,000-250,000 tons per month next year, Budiono said.

NCI has also bagged a contract with an undisclosed trader to suppy coal to Germany and China, each for a period of two years, he said, without giving more details. The calorific value of the coal from the mines is between 5,600-6,000 kcal/kg (ADB), he added.

Bhakti plans to continue increasing production and pursue on its efforts to acquire other potential concessions so that its total production will reach 15 million tons per year in 2012. (giok)