Malaysia?s Andaman acquires Indonesian coal mines

Malaysian firm Andaman Group has acquired 60 percent stake at two mining concessions in East Kalimantan, Malaysian medias reported on Thursday.

The two mines which are located in Kutai Kartanegara and Berau regencies would start production within the next three months with each mine would produce 50,000 tonnes per month, to be ramped in 5 years to 500,000 tonnes per month each, the reports said quoting President Patrick Teoh Seng Foo.

The two mines have a combined proven coal reserves of more than 70 million tonnes, with Kutai mine would produce high-quality coal and the Berau mine medium-quality, he said.

Teoh said Andaman and its Indonesian partner is also expecting to acquire another coal mine concession in East Kalimantan with proven reserves of over 50 million tonnes by end-2007.(*)