Samindo to acquire coal mine in Kalimantan

IDX-listed mining service company PT Samindo Resources Tbk (MYOH) plans to acquire a coal mine in East Kalimantan as part of the company?s expansion program in the upstream mining operations, Kontan reported on Wednesday.

Samindo?s director for business development Priyo Pribadi said in Jakarta on Tuesday that the company intended to acquire a coal mine with reserves of at least 30 million tons in East Kalimantan.

He said that Samindo was still conducting a geological study on the coal mine and hoped that the study could be concluded between May and June this year so that the final decision to acquire the mine could be decided afterwards.

Samindo expects that the coal mine, which would produce at least 50,000 tons a month or 500,000 tons a year, would be able to increase the company?s net profits by at least 90 percent. As of September, 2012, the company booked total revenues of Rp 789.69 billion and net profits of Rp 21.74 billion.

Priyo said that the company would use its internal financial sources and a capital injection from its parent company to finance the coal mine acquisition. At present, the company has total assets of Rp 350,56 billion with total cash of about Rp 35.30 billion.

He said that the company would export its coal to South Korea and China. (*)