Timah seeks new coal mining areas

State tin miner PT Timah Tbk, is seeking coal mining firms to be acquired as deposit of the existing one begins to deplete, Investor Daily reported Monday.

 

Timah’s president director Wachid Usman said in Jakarta last week that efforts were now underway to approach a number of coal mining firms in South, East and West Kalimantan . “We will continue to make efforts to acquire (coal mining firms) in the regions,” he said.

 

According to Usman, Timah is now financially sound and that it won’t have a problem with the funds for the acquisition plan amidst the improved market share domestically and abroad.

 

Currently, Timah owns a coal mining firm, PT Tanjung Alam Jaya (TAJ). “But its deposit has started to run down and will probably be only enough until 2010. We have collaborated with J-Coal to explore the lower part of the mining to find more deposit. We are still waiting for the result,” he said.

 

As of the first semester of 2007, TAJ’s output stands at 800,000 tons and is expected to reach 1.5 million tons throughout this year.

 

Usman added that to meet the export demand from Japan and South Korea, Timah had also been engaged in coal trading. “We purchase coal and we blend it with that produced by TAJ and in this way, we can get coal with the calorie of 6,500,” he said. (*)