Indo Tambangraya in talks to acquire E. Kalimantan coal mine

Listed coal mining firm PT Indo Tambangraya Megah (ITM), Indonesian unit of Thai energy firm Banpu Plc, will allocate about US$110 million in capital expenditures this year to further boost production.

ITM corporate secretary Roslini Onwardi said in Jakarta last week that the capital expenditures would be partly allocated to purchase new heavy equipment vehicles and to develop new coal mines and their related infrastructure facilities.

Rosalini said that with the increase in the capital expenditures, the company hoped coal production could be increased to 25 million tons this year from about 22 million tons last year.

The production slightly dropped in 2010 because of bad weather such as too many rains during the year.

According to earlier statement, ITM plans to produce 26 million tons this year.

Rosalini said that the funds to be allocated for the capital expenditures would be taken from internal funds which reached a total of about Rp 3.19 trillion ($354.72 million) as of September, last year.

She said that the funds did not include those allocated for acquisition. ?As for the acquisition, we are currently in talks to acquire several coal mines in East Kalimantan,? she added. But she did not give details. (*)