MITI ventures to coal mining
Thursday, May 23 2013 - 08:17 AM WIB
IDX-listed PT Mitra Investindo Tbk (MITI), a granite mining company, has planned to expand into coal mining.
Currently, the company is seeking a coal concession which has an economic reserve to produce, based on the criteria set by the firm.
?The economic reserve depends on the calorific value (CV) of the coal contained in the concession. For example, if it has a high CV, then a reserve of two million tons will be enough. But if the CV is low then, the reserve should be more than that,? MITI President Director Kumari told Petromindo.com in Jakarta on Thursday.
Kumari said that until now his company has not yet found a concession with the expected criteria. ?We also do not limit the areas of concessions to be acquired. But usually, coal concessions are mostly in Kalimantan island,? he said.
According to him, the source of fund for his company?s acquisitions of the coal concession will be derived from the right issues to be conducted by the company. ?Our internal cash will not be enough to finance the acquisition,? he said.
MITI has a granite mining area of 67 hectares in Bintan island of Riau Islands province. The granite concession is estimated to have a granite reserve of nine million tons.
Editing by Benget Besalicto Tnb.