Golden Energy acquires Sumatra coal miner

IDX-listed coal mining firm PT Golden Energy Mines Tbk announced Monday it has signed an agreement to acquire coal mining firm PT Era Mitra Selaras.

The company said in a statement that the value of the acquisition, which is expected to be completed in September, is US$37 million, to be financed internally. No further details were provided.

According to Kontan, Era Mitra is a coal mining firm with concessions located in South and West Sumatra provinces. Company Corporate Secretary Sudin Sudirman was quoted as saying that the acquisition will help increase the company?s coal reserves.

He added that the share and sale purchase agreement was signed with Glenfield Capital Inc.

Golden Energy aims to increase coal production this year to 9 million tons from 8.5 million tons last year. The company has allocated $15 million for capital expenditure this year.

Editing by Reiner Simanjuntak