PT Timah plans to acquire two more coal firms

State-owned tin producer PT Timah Tbk is mulling to acquire two coal mining firms through its subsidiary PT Timah Investasi Mineral, the Bisnis Indonesia newspaper reported in its Monday edition.

Timah's president director Thobrani Alwi said that the plan is part of the company's strategy to develop its business.

"Our target is to acquire two more coal companies. May be still in the area of South Kalimantan. But it can be also in East Kalimantan, Riau or southern part of Sumatra. We are studying which one will be more profitable," Thobrani said over the weekend in Jakarta.

Without mentioning the names of the companies that are going to be acquired, Thobrani said the coal business has wider prospects because the demand and coal prices have been increasing and this will continue in the future.

At the end of 2003, PT Timah acquired PT Tanjung Alam Jaya, a coal firm based in South Kalimantan. It has a production capacity of 300,000 tons of coal per year. (*)