Reswara plans to acquire new coal concession
Thursday, March 6 2014 - 03:40 AM WIB
PT Reswara Minergi Hartama, a coal mining subsidiary of IDX-listed PT ABM Investama Tbk, plans to acquire a new coal concession as part of a strategy to increase the value of the company.
?We have looked into a number of concessions,? President Director of Reswara, Harry Asmar told Petromindo.com Wednesday, but quickly added that the company has yet to decide on which to be acquired.
Harry said that the company wants concession containing high calorific value coal, at least to have the same CV as the company?s Tunas Inti Abadi (TIA) concession in South Kalimantan which has a CV of ADB 5,700 kcal/kg.
He added that Reswara prefers the targeted concession to be located near the TIA concession or its Media Djaya Bersama (MDB) concession, which is located in Aceh.
?If the (targeted) concession is located near TIA, it will increase the reserves of our high CV coal. But if it?s located in Aceh, then we?ll use the coal for blending with the MDB coal which has a low CV,? Harry said, while adding that the company is also open to the possibility of acquire new concession located far from the two existing concessions.
He also said that the company prefers the targeted concession to be already in production stage, although it would not have problem in developing greenfield concession as it already have the necessary expertise.
Reswara has set a coal production target of 8.3 million tons this year. The TIA concession will produce about 5 million tons, while the MDB concession 3.3 million tons. A large part of the production will be exported to countries such as China, India and the Philippines.
Editing by Reiner Simanjuntak