PTBA acquires E. Kalimantan coal mine

IDX- listed state coal mining firm PT.Tambang Batubara Bukit Asam announced on Thursday it had clinched deal to acquire 51 percent shares of East Kalimantan miner PT.International Prima Coal (IPC) for US$17.85 million.

IPC, which is owned by local conglomerate Rajawali Group, holds a concession with resources of 45 million tonnes with CV ranges from 4,800-6,000kcal/kg ADB.

Currently, the mine is in exploration stage and would be ready to start production in 6-12 months with initial production of 1 million tonnes per annum in the first year, and then ramped up to 2 MTPA.

The mine is located approximately 5-km from Sanga-Sanga river, which could service barges of up to 300 feet or 7,500 DWT size. ?The short distance between mine to barging station will enable the mine to cut operations costs,? the company said. (denny)