Samindo hopes to realize coal mine acquisition this year

By Thomas Sembiring

Petromindo|Khalsa

IDX-listed coal mining contractor PT Samindo Resources Tbk hopes to be able to realize its plan to acquire a coal mine this year as part of the company?s strategy to diversify into power plant business.

Samindo Investor Relations Manager Ahmad Zaki Natsir, however, told Petromindo.com on Tuesday that it would also depend among others on whether the acquisition target has clear legal status. ?If the infrastructure issue is okay, the legality is okay, then within two or three months we can finalize (the acquisition),? he said.

As has been previously reported, Samindo has set aside US$100 million to acquire a coal mine, particularly located in East Kalimantan Province. The company said in a recent filing with the Indonesia Stock Exchange that it has reviewed a number of acquisition targets, but found out that the concessions are overlapping with other concessions, and that access to the remote concessions are quite difficult given the lack of road infrastructure.

Ahmad said that the company is currently in the process conducting due diligence of a coal mine in East Kalimantan with estimated reserves of 20 million tons. He said that the company has yet to realize the acquisition given the limited infrastructure facility of the coal mine target.

Editing by Reiner Simanjuntak