Timah conducts due diligence on S. Sumatra coal concession

By Hiski Darmayana

IDX-listed tin mining firm PT Timah Tbk is currently carrying out a due diligence for a coal concession in South Sumatra as the company aims to complete the acquisition of the concession this year.

?Our target is for us to complete the acquisition of the concession this year, and we?ll be the majority owner of the concession,? President Director of Timah, Sukrisno told Petromindo.com Thursday.

He, however, declined to disclose the exact location of the concession, saying only that it has reserves of about 60 million tons. ?The production capacity is 1.5-2 million tons per year, with calorific value of 5,000-6,500 kcal per kg,? he said.

Meanwhile, Timah has completed a due diligence process for a coal concession in East Kalimantan. ?We are currently in talks over the price with the concession owner,? Sukrisno said, while also declining to disclose the location of the concession.

In terms of capacity, it has about the same capacity as the concession in South Sumatra. ?The reserves of the concession (in East Kalimantan) is 47 million tons, with CV of above 6,000 kcal/kg,? he said.

The planned acquisition of the coal concessions is part of Timah?s strategy to expand beyond tin mining.

Editing by Reiner Simanjuntak