Indo Tambang to acquire two coal mines
Thursday, May 3 2012 - 01:51 AM WIB
ITMG?s finance director Edward Manurung said in Jakarta on Wednesday that he could not unveil the estimated value of the acquisition because the company was still conducting a feasibility study on the planned acquisition.
?If the acquisition value is between US$100 million and $200 million, we will use our internal funds to finance the acquisition,? he said. ?However, if the value exceeded that figure, we would seek external sources,? he added.
In the first quarter of this year, the company?s coal production rose by 10 percent from about 5.2 million tons in the same period last year. This year, the company sets a target to produce 27 million tons, a slight increase from 25 million tons last year.
Edward said that the company projected relatively low increase in production this year because there is a decline in the production in two of the company?s mining areas ? Kitadin and Jorong Barutama Greston. The two mining sites produced only 700,000 tons and 1 million tons last year, respectively, down from 1.3 million tons and 1.4 million tons in 2010.
Other mining site which is operated by ITMG?s subsidiary Bharinto Ekatama is expected to contribute 700,000 tons to the total production this year, meanwhile the production of other subsidiary PT Indocominco Mandiri is projected to reach 15 million tons, up from 14.8 million tons last year.
The production of the Kitadin-Mayan is expected to increase from 400,000 tons to 2.7 million tons, while the production of Turbaindo Coal Mining is estimated to stagnate at 7.1 million tons.
ITMG estimates the average sale price of about US$100 per ton this year, up from the average realized price of $97.4 per ton last year.(*)