ITM to establish coal trading company

By Andi Istrada

IDX-listed coal miner PT Indo Tambangraya Megah Tbk (ITM) announced its plan to set up a new subsidiary, PT ITM Indonesia.

In its statement to the IDX, ITM said on Friday that its new subsidiary would deal on coal trading.

ITM earlier said that the company planned to acquire a new coal concession with the minimum reserve of 50 million tons.

?We are also eyeing the concession with medium to high calorific value, like we are having now,? said company Financial Director Edward Manurung to Coal Asia, after the shareholders meeting in Jakarta end of March.

The company sets to produce and sell 29 million tons of coal this year from all six concessions in East Kalimantan and South Kalimantan.

Edward also said that of the total sales target, 77 percent of them were already sold, 44 percent of which had been set in terms of price and volume.

Editing by Adianto P. Simamora