PTBA to buy four Salim's coal mining firms

State-owned coal mining company PT Tambang Batubara Bukit Asam (PTBA) will buy four coal mining companies from PT Holdico Perkasa, a holding company formed by the Indonesian Bank Restructuring Agency (IBRA) to manage assets belonging to the Salim Group pledged to the agency.

The four coal mining companies are PT Indominco Mandiri, PT Kitadin, PT Truba Indo Coal Mining and PT Barasentosa Lestari. All the four had operations in East Kalimantan. "Two have been in operation, while the two others are still in their exploration stage," said PTBA president Sunardi, noting that the two operating firms are Indominco and Kitadin.

Sunardi said that the acquisition of the four companies aimed to improve the efficiency of PTBA's operation, in terms of mining management and marketing of coal products. He noted that PTBA and the four to-be-acquired companies would conduct joint marketing for their coal.

He expressed optimism that the acquisition of the four coal mining companies from Holdico would proceed smoothly. PTBA had hired advisors for the acquisition and allocated funds, including foreign loans, to finance the acquisition. But he refused to provide further details. (*)