Timah acquires coal concession

IDX-listed tin giant PT Timah Tbk has acquired a 10 percent stake in a coal mining concession in South Sumatra, and is in the process of acquiring another 70 percent shares in the concession, marking the company?s first entry into the coal mining business, Kontan daily reported Thursday.

Timah Finance Director Akhmad Rosidi said that the company was also in the process of completing a due diligence to acquire a coal concession in Kalimantan. The acquisition process is expected to be completed late in 2014.

He said that once the acquisition of the two coal concessions is completed next year, the company is expected to be able to produce about 1.2 million tons per year. Other reports said that the coal in the two concessions has high calorific value. (*)