ITMG creates coal trading subsidiary and develops electricity supply business

IDX-listed coal mining PT Indo Tambangraya Megah Tbk (ITMG) created a coal trading subsidiary, PT ITM Indonesia, to integrate its business.

ITMG Director of Finance Edward Manurung said that the company is drafting business plan for PT ITM Indonesia, established in April 2013, to set the cost allocation.

ITMG injected Rp11 billion of capital to ITM Indonesia, a trading company that will export ITMG's coal to third party, according to Edward, reported by Kontan.

Edward said that a trading subsidiary was needed because the company has to blend its coal with third party one. ITMG has five coal concessions and boosts coal sales this year.

"As of the first half of this year, coal sales to both domestic and export markets complies to the 14.4 million tons target," Edward said.

ITMG also sets a plan to build private coal-fired power plant as ITMG's holding company Banpu Public Company Ltd is an energy firm.

"We think that there is greater energy demand, so we diversify our business to power plant," Edward said. (*)