Harum plans to acquire new concessions

IDX-listed coal miner PT Harum Energy Tbk plans to acquire new concessions to help increase reserves, and has allocated US$470 million to finance the acquisition program, reports said Friday.

Harum President Director Ray Antonio Gunara said that while there have been several offers proposed to the company, none has been realized due mainly to price disagreement.

He added that the company was interested in acquiring concessions in East Kalimantan. About $200 million of the financing allocation for the acquisition will come from internal funds, while the rest from bank loans.

Elsewhere, Ray said that the company has revised downward production target for this year to 8-9.5 million tons due to the lingering downturn in global coal market.

About 7-8 million tons of the output target will come from subsidiary PT Mahakam Sumber Jaya, while the remainder to come from another subsidiary PT Santan Batubara.(*)