Timah sets to acquire coal companies this year

Publicly listed tin mining company PT Timah Tbk plans to take over two coal mining companies this year as part of the firm's coal business expansion plan.

The company's corporate secretary Abrun Abrar told Petromindo.Com on Friday that is still in negotiation with PT Titan Mining Energi and PT Energi Batubara Lestari.

?Our team is now in the phase of studying related documents. We expect to realize the acquisition plan this year,? he said, adding the acquisition aims to increase the firm's coal reserves to 50 million tons.

PT Energi Batubara Lestari is a unit of Hasnur Group, which is based in South Kalimatan, while Titan Mining Energy, which has a mining concession in Jambi, is one of the companies that have won the tender to suppply coal to state-owned electricity firm PT Perusahaan Listrik Negara's 10,000 MW project.

In October 2006, Titan signed Letter of Intent (LoI) with PLN to supply 3.445 million tons of coal for the 10,000 MW project.

Both companies' officials could not be reached for comment Friday morning. (denny)