Timah cancels coal mining acquisition

State-owned tin miner PT Timah Tbk cancels its plan to acquire two coal mining companies in East Kalimantan and South Kalimantan respectively because of legal problems involving the companies? coal concessions.

?After the company finished due diligence, there is legal problem in the both of coal mining concessions including overlapping with forestry land,? Timah?s President Director Wachid Usman told Petromindo.Com on Tuesday.

He declines to reveal the company?s name.

Earlier, the company's corporate secretary Abrun Abrar said that it was in negotiation with two South and East Kalimantan-based coal miners and Jambi-based coal miner PT Titan Mining Energi. The negotiations were expected to be completed this year, he said on Feb 15.

PT Timah is seeking to buy new coal mining firms to increase its coal reserves to 50 million tons as the existing one begins to deplete. Currently, Timah owns a coal mining firm, PT Tanjung Alam Jaya (TAJ) in South Kalimantan. But its deposit has started to run down and will probably be only enough until 2010. (godang)