Killara to spend $150m for mine acquisitions

Australia-listed firm Killara Resources Limited plans to spend up to US$150 million to finance acquisitions of 11 coal and gold mine concessions in Indonesia within the next two years, Kontan daily reported on Monday.

Chief executive officer Ridwan Zachrie said in Jakarta last week that the company is currently in the process of acquiring several mines in Bintuni in West Papua; Sintang in West Kalimantan; and in Kutai in East Kalimantan.

?Hopefully, we can complete the acquisition this year,? he said.

Ridwan said that in the acquisition plan, Killara would only acquire coal mines which hold coal reserves of at least 20 million tons, and gold mines which hold reserves of at least 500,000 ounces based on Joint Ore Reserves Committee (JORC).

?Our target is to acquire 11 coal and gold mines during the period between 2012 and 2014,? he added.

The acquisition could be also in the form of establishing a joint operation with existing mining companies. ?But Killara will become a majority shareholder in the joint venture,? he said, adding that Kallara was currently in talks to work under joint operations with Adaro and a subsidiary of Bakrie Group. (*)