Mitra plans to produce 1.2 MTPA of coal next year

IDX-listed oil, gas services company PT Mitra Rajasa Tbk plans to complete the acquisition of two coal mining companies PT Realita Jaya Mandiri dan PT Masindo Artha Resources before the end of this month, Investor Daily reported Tuesday.

Newly elected President Director of Mitra Rajasa, Tito Sulistio, said in Jakarta on Monday that the company expected to raise loans from two local banks to finance the acquisition of the two companies which are both located in South Sumatra.

In March, Mitra Rajasa agreed to acquire the entire stake of PT Realita and PT Masindo Artha for about US$40 million.

PT Realita operates a coal KP concession of about 1,598 hectares, which has started production, while Masindo owns two coal KP concession areas of 5,600 ha and 4,400 ha, respectively . Reserves at the three concessions are estimated at 100 million tons.

?After the acquisition, the production will be further increased. We hope combined production will reach 1.2 million tons next year,? Tito said to reporters following the company?s extra-ordinary shareholders meeting. (*)