Indo Tambangraya seeks to acquire new coal mine
Tuesday, March 29 2016 - 01:28 AM WIB
IDX-listed coal mining firm PT Indo Tambangraya Megah Tbk is seeking to acquire a coal mine this year to help ensure future revenue growth.
Finance Director Yulius Ghozali said on Monday that the company is looking to acquire producing mine located either in Sumatra or Kalimantan, with minimum reserves of 30 million to 50 million tons, and containing coal with medium calorific value.
The acquisition plan comes after the company shut down its Tandung Mayang mine in East Kalimantan late last year due to depleting reserves, and plans to close down the Jorong mine in South Kalimantan next year.
Indo Tambangraya operates six other mines including Indominco, Bharinto, Trubaindo, and Kitadin Embalut in East Kalimantan.
The planned acquisition also comes as the company has yet to be able to realize its intention to diversify into power generation business, which means future revenue will still heavily rely on coal.
?Business diversification has yet to be realized that?s why it?s important for us to be able to acquire an operating coal mine. In terms of location, we?ll prioritize Sumatra andn Kalimantan,? Yulius said.
Indo Tambangraya has failed to win tender for the development of the PLTU Jawa-7 2x1,000 MW coal-fired power plant.
Yulius said that in terms of financing, the company is ready to carry out the acquisition this year. The company currently has cash and cash equivalent worth US$267.82 million. ?In addition, we have standby loans from six banks. So in terms of financing, we?re ready,? Yulius said.
Editing by Reiner Simanjuntak