Tiga Pilar buys Riau Baraharum coal mine

Indonesian-listed food manufacturer PT Tiga Pilar Sejahtera Food Tbk has bought Riau coal miner PT Riau Baraharum (RBH), an industry source told Petromindo.Com on Wednesday.

Tiga Pilar bought the mine from investment fund Spinnaker Capital Group in June 2010, through special purpose vehicle (SPV) firm, the source said.

The source did not give details.

When Tiga Pilar's office in Jakarta was contacted by Petromindo.com,no officials were ready to comment.

Currently, the mine produces around 1.5-2.0 million ton per annum of coal.

In 2008, mining firm Tanito Coal Group sold RBH to investment fund Spinnaker Capital Group.

RBH is a second generation Coal Contract of Work holder, operating in Riau province, Central Sumatra. RBH started coal production in 2005.

The mine's coal resource is estimated at more than 70 million tons with calorific value of 5,700-6,200 kcal/kg (ADB). (denny)