Medco Energy in talk to acquire coal mine in South Sumatra

By Cepi Setiadi

Indonesia emerging coal producer company, PT Medco Energi Mining Internasional is currently in talks to acquire a coal mine in South Sumatra.

Arie Prabowo Ariotedjo, Managing Director of Medco Energi Mining told Petromindo.com that the acquisition process is expected to be completed this year.

The targeted coal mine holds a Coal Contract of Works (CCoW) with total resources of 400 million ton low rank coal.

"We have a synergy with the owner of the concession and they have trusted us, as we have already five shipments of coal so far," he said.

The company which is a subsidiary of Medco Energi Internasional Tbk had its maiden production in 2012. The company targeted to produce 500,000 ton in 2012 but only realized 135,000 tons production due to the bearish coal market. The company is expecting to produce about 660,000 tons of coal from its two concessions in Nunukan, East Kalimantan this year.

Editing by Adianto P. Simamora