Garda Tujuh to acquire new coal mine in 2013

PT Garda Tujuh Buana Tbk, one of several coal mines listed on the Indonesian Stock Exchange (IDX) plans to acquire a coal mine next year to further expand the company?s coal mining operation, Kontan daily reported on Wednesday.

The company?s commissioner Pardeep Dhir said in Jakarta on Tuesday that Garda Tujuh targeted to acquire only one coal mine next year because selecting a coal mine which has a qualification at least the same with the company?s existing coal mine would take time.

He said that Garda Tujuh produces coal with low rank calorie in its coal concession area in Pulau Bunyu, Bulungan, East Kalimantan. The mine has coal resource of about 300 million tons and coal reserve of about 100 million tons.

Pardeep said that the company had prepared about US$50 million in internal funds to finance acquisition. This year, Garda Tujuh plans to produce about 3 million tons of coal. In the first semester of this year, the company produced 1.2 million tons. (*)