ITMG expects government approval next year over proposed mine closure

By Thomas Sembiring

IDX-listed coal mining firm PT Indo Tambangraya Megah Tbk (ITMG) expected government approval next year over the company?s plan to close down the Jorong mine in South Kalimantan.

?Government approval is expected next year, so that it (mine closure) can be realized in 2018,? said Corporate Affairs Director at the company, Leksono Peranto said Monday.

ITMG announced previously that the Jorong mine, operated by subsidiary PT Jorong Barutama Greston, in 2017 as reserves is depleting. It has also said it would end mining operation at Tandung Mayang mine in East Kalimantan, operated by another subsidiary PT Kitadin, in 2016 on similar reason.

ITMG has said that the Jorong mine is targeted to produce 1.2 million tons of coal this year. The company has said that total production this year is targeted at 26.9 million tons, a 5.6 percent lower than last year?s realized output.

Leksono said that the company plans to acquire new mines this year or next to help maintain reserves. He did not provide details about the acquisition plan.

Editing by Reiner Simanjuntak