Timah seeks Sumatra coal mines acquisition

Indonesian listed tin miner PT Timah plans to spend US$30 million to acquire coal mines in Sumatra instead of Kalimantan, the company?s president director said last week.

?Currently, we are conducting due diligence on two coal mines in Sumatra. Each of the mines has coal production between 1-1.5 MTPA, ? Wachid Usman said, refusing to predict when the due diligence process will be completed.

PT Timah is seeking to acquire coal mines keep its coal business alive despite that its South Kalimantan coal mining subsidiary PT Tanjung Alam Jaya (TAJ) may cease production in 2012 due to resource depletion. TAJ is currently producing around 1 million tons per year.

Corporate secretary Abrun Abubakar said in January that the company in its search is focusing on areas in South Sumatra, South and East Kalimantan. Abrun said Timah is looking to acquire concessions with mineable reserves of at least 50 million tonnes. (*)