PT Timah joins a tender to acquire four coal-mining firms

Publicly listed tin mining company PT Timah has decided to participate in a tender to acquire four coal mining companies formerly owned by the Salim Group, the company's senior executive said as reported by Media Indonesia on Friday.

PT Timah's president and chief executive officer Erry Riyana Hardjapamekas said on Thursday that the tin company was conducting a one-month due diligence on the four companies which included PT Indominco Mandiri, PT Kitadin, PT Trubaindah Coal Mining and PT Barasentosa Lestari.

Erry said that the tin mining company would continue with a final bidding if the due diligence showed a positive result. "We hope the acquisition of the coal mining companies could be finalized this year," he was quoted as saying.

The four coal mining firms are part of the Salim Group's assets surrendered to the Indonesian Bank Restructuring Agency (IBRA) to repay the business giant's massive debts to the government. The assets were pooled at PT Holdiko Perkasa, a company jointly established by IBRA and the Salim Group.

Of the four coal mining companies, only PT Kitadin and PT Indominco, which have started production. The others are still involved in exploration works.

Erry said that the tin company's participation in the tender was in line with its diversification program from tin production to other mineral resource mining activities. "PT Timah must expand into other mining activities because the tin reserves controlled by the company has started to decline," he added.

He said that PT Timah would hold an extraordinary meeting on February 14 to decide whether or not to continue with the final bidding.

PT Timah, the largest tin mining company in the world, is still controlled by the government. A small portion of the company's shares is owned by the investing public comprising of both local and foreign investors. (*)