Timah set to take over new coal mining company

State-owned tin mining company PT Timah Tbk hopes to conlude whether to acquire a 60 percent stake in coal mining company PT Bara Anugrah Sejahtera in early next year.

The company?s corporate secretary Abrun Abubakar said in Jakarta on Wednesday that PT Timah was currently conducting a due diligence audit on Bara Anugrah as part of the acquisition plan.

?We hope the due diligence audit will be completed in the first quarter of next year,? he said. ?The audit result will be used as the basis in determining whether or not we will go ahead with the acquisition plan,? he added.

The acquisition value is targeted at around US$72 million.

He said that the mine has a minable reserve of 59 million tons spread acorss an area of 197 hectares, with calorific value of 6,073 kcal/kg (ADB), total moisture of 20.37 percent (AR), low sulphur content of 0.22 percent and ash content of 5.07 percent.

He said that Timah intended to take over Baru Anugrah because the coal reserve of PT Tanjung Alam Jaya, a coal mine owned by PT Timah?s subsidiary, would be enough only for between two and three years. (*)