Semen Gresik to acquire producing coal mine

Cement maker PT Semen Gresik Tbk confirmed on Thursday that it plans to acquire a producing coal mine in line with the company?s mid-long term strategy to boost the company?s cement volume output.

The company expects to increase its total installed capacity to 30 million tonnes of cement by 2015 from the current 20 million tones, thereby increasing its coal need to 6.5 million tonnes in 2015 from 3.5 million tonnes currently.

However, the company has yet to decide when the acquisition plan be executed and of which mine.

Coal is used to fire kiln and it accounts for 27 percent of the overall cement production costs. (romel)