INVS expects Rp 1 trillion from coal mine business

PT Inovisi Infracom Tbk (INVS) expects to raise up to Rp 1 trillion in sales from the company?s coal mine operations which are run by subsidiary PT Goldchild Integritas Abadi (GIA), Kontan daily reported on Thursday.

INVS?s finance director Adrian Ooi said GIA?s coal production from its two coal mines in Kalimantan was expected to reach 3 million tons this year.

He said that as of the end of 2011, INVS owns five concession areas in Central Kalimantan and East Kalimantan, with total areas of 34,000 hectares. Two of the concession areas have begun production, and the other three are still at exploration stage.

Adrian said that the company would spend up to US$65 million to build infrastructure facilities and exploration works for the three coal mines. INVS, which is also engaged in building telecommunication infrastructure is also in negotiations to take over five more coal mines in Kalimantan. The company has set aside Rp 1.3 trillion for the takeover.

If the acquisition of the five coal mines could be realized, the company?s coal reserves could reach 1 billion tons, rising from about 500 million tons at present. (*)