Perdana Karya in talks to acquire coal mining concession

JSX-listed coal miner and contractor PT Perdana Karya Tbk has allocated Rp 200 billion to finance its business expansion projects including a plan to acquire several coal mining blocks in Kalimantan , Investor Daily reported Monday.

 

Perdana Karya’s president director Soeroso said in Jakarta last week that the funds came from the initial public offering (IPO), leasing and loan from PT Bank Lippo Tbk.

 

According to Soeroso, the fixed number of coal mining blocks to be acquired had yet to be announced because the acquisition was still in progress. Normally, it takes between six and 12 months for a company to complete the acquisition process because it has to go through legal and exploration phases.

 

He said that the company would approve the acquisition process soon it was found that the  coal mining blocks now under study meet the company’s requirements in terms of calorie content and deposit.

 

Coal mining concession should have the minimum coal deposit of two million tons, he added.

 

Currently, Perdana Karya is producing of 300,000 MTPA of coal, which comes from Teluk Dalam mine in Samarinda, East Kalimantan with mining area of just 100 hectares. (*)