Medco to enter coal business

Medco Group will soon expand into mine and agribusiness sectors, with an initial investment of about US$50 million.

The business group, which is controlled by the Panigoro family and is now focusing on oil and gas sector, has established new subsidiaries PT Medco Mining and PT Medco Agro to run the two lucrative business sectors.

Hilmi Panigoro, the Chief Commissioner of PT Medco Energi International Tbk, said that Medco Mining would acquire a number of coal mine (KP) concessions in Kalimantan and Sumatra as part of the expansion plan, he said.

"For the initial stage, we will focus on coal mining before entering other mining sectors," he said. But he did not give further details. (Bernard)