Sumalindo seeking strategic investors

IDX-listed forestry firm PT Sumalindo Lestari Jaya Tbk, is seeking strategic investors to support the company?s expansion plan into the mining sector, Bisnis Indonesia reported on Friday.

The company?s corporate secretary Hasnawiyah Kuno said in Jakarta on Thursday that Sumalindo had established new subsidiary PT Suli Inti Resource to run the mining business.

?Because the mining sector is relatively new for us, we will cooperate with experienced partners to run the mining business. The mining activities will also require large amount of capital,? she added.

Hasnawiyah said that the new subsidiary would not only be involved in coal but also other mining activities. She said that the company decided to enter the mining industry because it would also take the advantage of the country?s great mining potential.

She said that the expansion into coal mining was also intended to ensure sustainable supply of coal for its subsidiary PT Kalimantan Powerindo, which operates a coal-fired power plant in Kalimantan.

Sumalindo said earlier that the new subsidiary would develop coal potential at the company?s forestry concessions in East Kalimantan. (*)