Djarum expands to coal mining business

Indonesian top clove cigarette producer PT Djarum plans to acquire coal mining companies in Kalimantan, Investor Daily reported on Monday.

?Not later than late the year, acquisition of coal mining companies will be completed as the negotiation is taking place intensively. Djarum provides investment amounting to US$1 ? $1.5 billion for the new business,? a company executive involved in the negotiation said in Jakarta last week.

Director of the Indonesian Coal Society Singgih Widagdo confirmed that Djarum plannned to expand its business to the coal sector. ?They must take over second generation (Contract of Work) coal mines, not Mining Concession (KP mines) because the area (of KP) is small. Yet, I don?t know exactly which companies to be acquired,? he said. (*)