Medco plans to acquire two coal concessions
Wednesday, July 31 2013 - 01:27 AM WIB
PT Medco Energi Mining Internasional, a subsidiary of IDX-listed energy concern PT Medco Energi Internasional Tbk, plans to acquire two coal concessions in Bengkulu and East Kalimantan. The company is currently conducting the due diligence process.
?The two concessions hold production operation IUP status. We?re currently completing land acquisition, and also we?re verifying the exploration results,? CEO of Medco Energi Mining Internasional, Arie Prabowo Ariotedjo told Petromindo.com Tuesday.
He added that the two concessions contain high calorie coal with reserves of 2 million tons.
The company, through subsidiaries PT Duta Tambang Rekayasa (DTR) and PT Duta Tambang Sumber Alam (DTSA) currently owns two coal concessions in Nunukan Regency, East Kalimantan. The DTR concession has reached production stage, which is targeted to produce 600,000 tons this year, while the DTSA concession is expected to start production in 2015.
In June, the company said it was also planning to acquire two coal mining firms in Musi Banyuasian Regency, South Sumatra.
Editing by Reiner Simanjuntak