Timah set to acquire coal concessions

State tin miner PT. Timah Tbk. is conducting due diligence to acquire two coal concessions in South and East Kalimantan and is expecting to come into decision whether to buy the properties within a month, according to a company official.

"Our consultant is now conducting due diligence on the two prospects. I cannot tell you the names now. But those properties are at advanced exploration stage and could be brought into production within a year," said president director Thobrani Alwi late Thursday.

"Development of the two prospects will be easy, as they are both located near transportation infrastructure."

Thobrani declined to reveal the names of the two prospects.

Meanwhile president commissioner Wimpy S. Tjetjep said if the properties are acquired, Timah will propose a joint venture with PT. Indonesia Power, a fully owned subsidiary of state electricity company PLN, to develop the projects.

"It will be a mutually beneficial venture as Indonesia power could get alternative coal supply for Suralaya and Paiton power plants," he said.

Timah, the world's largest tin producer, is planning to diversify activity to coal mining business.

Timah is also in posession of a coal mining area in East Kalimantan, PT. Timah Batubara Utama, which is also already at advanced exploration stage. But Thobrani said Timah would not likely develop the project in the near future as it was located far from transporation facilities and the construction of transportation infrastructure by Timah would be uneconomic.(alex/godang)