Harum seeks to acquire coal concession

By Tri Subhki R

IDX-listed coal mining firm PT Harum Energy Tbk continues to look for acquisition opportunities to take advantage of the current low valuation.

The company, however, only wants to acquire concession with coal qualities similar to qualities at its current four concessions.

?In fact, we have enough funding resources, but the opportunity is not there yet,? Harum President Director Ray Antonio Gunara said recently.

The company?s four coal concessions have coal with calorific value ranging from 5,400 kcal/kg (GAR) to 6,400 kcal/kg (GAR). ?We want to supply coal with the same quality to our customers,? Ray said. In total, the company has 82 million tons of coal reserves and 486 million of coal resources.

Currently, Harum owns four coal mining subsidiary companies in Indonesia namely PT Mahakam Sumber Jaya (MSJ), PT Santan Batubara (SB), PT Tambang Batubara Harum (TBH) and PT Karya Usaha Pertiwi (KUP). The company also has one coal mining firm in Australia, which is Harum Energy Australia Limited.

In Indonesia, Harum only operates one of the four mine sites, which is MSJ, the owner of third generation coal contract of work (CCOW), after having suspended the operation of SB, a joint venture with IDX-listed PT Petrosea Tbk, in 2014 due to the weak coal market.

Editing by Reiner Simanjuntak