Timah may integrate coal assets into PTBA

By Thomas Sembiring

Petromindo

IDX-listed tin giant PT Timah Tbk acknowledged that talks are on-going over the possibility of integrating its coal assets into the operation of IDX-listed coal giant PT Bukit Asam Tbk (PTBA) as part of the government?s plan to create a holding company of state controlled mining firms.

Timah and PTBA are controlled by the government, which is planning to create the holding company next year. State-owned aluminum maker PT Indonesia Asahan Aluminium (Inalum) will become the holding company for state controlled mining companies including Timah, PTBA, and IDX-listed mining firm PT Aneka Tambang Tbk (Antam). The latter has also considered the possibility of integrating its coal assets into PTBA.

?It (the planned integration of the coal assets into PTBA) has yet to be finalized. There is (direction toward integration), so that we can be focused (in tin mining),? said Riza Pahlevi Tabrani, President Director of Timah to Petromindo.com last week, but did not provide further details.

According to its website, Timah has coal concession in South Kalimantan run by subsidiary PT Timah Investasi Mineral. The mine has coal with calorific value of 6,500-7,000 kcal per kg with sulfur content of less than 1 percent. Timah also owns another coal mine asset in Muara Enim, South Sumatra, via subsidiary PT Truba Bara Banyu Enim.

Editing by Reiner Simanjuntak