Harum Energy sets aside Rp 2.58 trillion to acquire coal mines

East Kalimantan-based coal mining company PT Harum Energy Tbk has set aside about Rp 2.58 trillion (1US$ = Rp 8,600) for acquisition of new coal mines, one of the company?s programs to further expand its coal mine operation.

?We hope there will be acquisition transaction this year,? the company?s president director Ray Antonio Gunara said in Jakarta on Wednesday.

Ray said that Harum had targeted a number of coal mines which would be acquired by the company. But he refused to mention their names. He said that the mining companies which would be acquired should already have adequate coal reserve around 20-50 million tonnes and located in East Kalimantan.

The mining companies should also have coal reserves of a medium of range with a calorie content of above 5,000 kcal/kg, he said, adding that the funds allocated for the acquisition would come from bank loans and the company?s own funds.

Harum has three East Kalimantan coal production mines. The company is expected to produce 10.5-10.7 million tonnes of coal in 2011, higher than its production of 7.4 million tonnes last year.

PT Mahakam Sumber Jaya (MSJ) is expected to produce 7.5 million tonnes, up from 5.3 million tonnes in 2010, PT Santan Batubara is targeted to produce 2.5 million tonnes, higher than last year?s production of 2.1 million tonnes and PT Tambang Batubara Harum (TBH), which is scheduled to start commercial production in third quarter of this year, will produce around 500,000-750,000 tonnes.(*)