Timah to sell coal unit to Chinese investor

IDX-listed tin giant PT Timah Tbk is in the process of selling a 90 percent stake in coal mining subsidiary PT Tanjung Alam Jaya to a Chinese investor as reserves in the concession has declined, Investor Daily reported on Wednesday.

Timah owns 99.95 percent in Tanjung Alam, which holds a PKP2B coal mining contract for a 9,721 hectares concession in Banjar, South Kalimantan. Timah Corporate Secretary Agung Nugroho was quoted by the paper as saying that the coal reserves in the concession is now estimated at less than 10 million tons, and production has dropped from 1.5 million tons per year to 500,000 tons.

But the concession has underground coal reserves, which could be developed by the Chinese investor as it has the necessary technology. Agung declines to disclose the name of the Chinese investor. (*)