PTBA finalizes acquisition of two coal mines

State owned coal mining company PT Tambang Batubara Bukit Asam Tbk (PTBA) hoped it would be able to finalize the acquisition of two coal mining concession areas before the end of this year.

The company?s corporate secretary Achmad Sudarto said in Jakarta on Friday that the Tanjung Enim, South Sumatra-based coal mining company initially planned to take over four coal concession areas this year.

?But the other two are not feasible for acquisition,? he said. He explained that the two mining areas which were being negotiated had begun production. But he refused to unveil their locations.

According to him, the two mining areas would be able to help PTBA achieve its target to produce 50 million tons in 2014. Without acquisition, the company will only be able to produce 48.7 million tons in 2014.

The state coal mining company had allocated about Rp 1.44 trillion (1US$ = RP 9,000) in capital expenditure in its 2010 budget, mostly for acquisition of new coal mining areas. Between Rp 400 billion and Rp 500 billion of the capex are allocated for the purchases of new mining equipment and infrastructure construction.

"If the budget is not enough, we still have cash reserves of about Rp 4.8 trillion to help finance the acquisition,? he added. (*)