Resources Alam expands its coal portfolio
Thursday, February 9 2012 - 01:01 AM WIB
Indonesia-listed coal mining firm PT. Resource Alam Indonesia Tbk announced on Wednesday that it has signed agreements to acquire four coal mining concessions in Kalimantan under two separate deals worth US$ 7.92 million.
Under the fisrt deal, the company has agreed to acquire 75 percent shares in each of the following companies: (1) PT. Kaltim Mineral, (2) PT. Jaya Mineral and (3) PT. Tambang Mulia for a total value of $6.25 million.
The three companies are coal mining companies developing green-field projects in Kutai Timur, East Kalimantan. Each company is holding a coal mining concession (IUP ), all granted in 2010. The three IUPs cover a combined adjoining area of 23,521 hectares. Production is expected to start in 2015.
The second deal is acquiring 75 percent shares in PT. Chaido Mega Mineral for $1.67 million. Chaido is a company developing a coal mine in Kutai Kartanegara, East Kalimantan. It holds a coal mining concession (IUP) granted in 2008, covering an area of 5,000 hectares. The IUP is located within close proximity of Resource Alam?s northern block.
The company targets Chaido to start operation in 2013.
Resource Alam has performed due diligence survey and considers all the IUPs to have prospective open-cut mining potential and has commissioned PT. Britmindo, a reputable mining consultant to conduct intensive geological studies on some of the above IUPs.
?Future development of the newly acquired concessions, in addition to the Company?s organic growth, is in alignment with Resource Alam?s long term objective to become one of Indonesia?s major coal producers,? the company said.
Prior to the acquisition, the company?s only coal mine is PT Insani Bara Perkasa, a producing mine in Kutai Kartanegara regency, which is expected to produce 6 million tonnes of coal this year.
Editing by David Mustakim