PTBA conducts due diligence on acquisition target

IDX-listed coal mining firm PT Bukit Asam Tbk (PTBA) is in the process of conducting due diligence on a coal mining firm it planned to acquire as part of expansion strategy.

Bisnis Indonesia quoted PTBA President Director Milawarma as saying Monday that the company wants to diversify its coal assets outside South Sumatra. ?Currently, (production) has been centered in South Sumatra. For balance of coal supply, mines in other areas such as in Kalimantan are also needed,? he said, but declined to provide further details about the acquisition target and the estimated acquisition value.

?We don?t know when the due diligence will be completed,? he added.

The current drop in coal price has prompted some miners to make acquisition on low valuations.

Last year, PTBA through subsidiary PT Internasional Prima Coal acquired South Kalimantan coal miners PT Tabalong Prima Resources and PT Mitra Hasrat Bersama for a combined US$36 million.

In the same year, the company through subsidiary PT Bukit Multi Investama acquired 95 percent interest in coal mining services company PT Satria Bahana Satria. (*)