PT Timah delays mine acquisition in Kalimantan

State owned tin mining company PT Timah has cancelled its plan to acquire a coal mine in South Kalimantan this year due to uncertainty in coal prices in the world market, Bisnis Indonesia reported on Monday.

The company?s President Director Sukrisno said that this year the company would only realize the acquisition of a coal mine in South Sumatra. ?Previously we planned to acquire two coal mines, one in South Sumatra and the other one in South Kalimantan,? he added.

He said that the company would become a majority shareholder of the South Sumatra coal mine which would be acquired soon.

With the delay in the acquisition, the company will reduce its capital expenditure (capex) by 25 percent to Rp 1.5 trillion from the previous estimate of about Rp 2 trillion. The reduction of the capex will be also made as part of the cost-efficiency program.

Sukrisno said that spending for non-operating activities such as renovation of buildings and transportation would also be cut down as part of the cost-efficiency program.(*)