Samindo delays planned coal concession acquisition

By Hiski Darmayana

IDX-listed coal mining services company PT Samindo Resources Tbk has decided to postpone its plan to acquire a coal concession this year as it turns out that the commodity price is expected to remain in the doldrums.

?But we?re still interested in acquiring a new coal concession when the coal price has recovered. We may probably implement the plan next year,? said Director of Business Development, Priyo P. Soemarno Friday.

The company has set criteria for the expected coal asset one of which is that the concession must have coal with calorific value of 5,800-6,000 kcal/kg, and the reserves must be about 30 million tons. ?We want concession which has reserves data, and if possible has obtained the JORC certification,? Priyo said.

For this year, Priyo said that the company would focus on realizing a set of targets including overburden removal of 58 million bank cubic meters, which is up from 52 million BCM last year.

?In terms of coal production, the target for this year 11 million tons, up from the realized 9 million tons last year,? he said. Meanwhile, in terms of coal hauling for this year, the target has been set at 33 million tons, an increase from 30 million tons last year.

Samindo has four subsidiaries engaged in various mining services activities. The four include Sims Jaya Kaltim, Transindo Murni Perkasa, Samindo Utama Kaltim, and Mintec Abadi. Through the four subsidiaries, the company is currently developing coal concessions owned by PT Kideco Jaya Agung in East Kalimantan.

Editing by Reiner Simanjuntak