Samindo to press ahead with coal mine acquisition

Despite a slower first quarter performance, IDX-listed coal mining services company PT Samindo Resources Tbk said it will press ahead with its planned coal mine acquisition.

Kontan quoted Samindo Corporate Secretary Hananto Wibowo as saying Saturday that the acquisition of coal mine in East Kalimantan forms part of the company?s strategy to diversify into integrated power plant business.

He said that the company is currently still conducting serious study on the planned acquisition, and has yet to decide which mine to be acquired as the company?s parent, South Korea?s Samtan is very careful in taking decision.

Samindo in the first quarter of this year saw revenue down by 16.24 percent to US$55.99 million compared to $63.27 million in the corresponding period of last year. Meanwhile, net profit fell by 7.33 percent to $6.82 million from $7.36 million.

Hananto said that the lower revenue was partly due to the shortening of hauling distance at mines owned by its clients.

Operationally, Samindo reported that coal output increased by 26.72 percent to 2.75 million tons during the first three months of this year from 2.17 million tons in the corresponding period of last year.

Overburden removal during the period increased to 13.43 million bank cubic meters from 13.15 million bcm. (*)