Toba Bara plans to acquire coal mine
Tuesday, November 1 2016 - 01:48 AM WIB
IDX-listed coal mining firm PT Toba Bara Sejahtra Tbk said it is planning to acquire coal mines to help increase reserves and support the company?s planned coal-fired power plant project.
Toba Bara Director Pandju Sjahrir told Petromnindo.com on Monday that the targeted mine must have sufficient reserves that can last for at least 25 years. He added that the mine preferably is located in East Kalimantan near its existing coal mines.
Toba Bara through subsidiary PT Gorontalo Listrik Perdana (GLP) is planning to develop a 2x50 MW coal-fired power plant in Gorontalo Utara, Gorontalo Province.
Arthur Simatupang, President Director of GLP and a Director at Toba, said that the planned coal mine acquisition is also expected to support the power plant project, which requires coal with calorific value of 4,000-4,500 kcal/kg.
He said that the company?s existing mines produce coal with CV of 4,700-4,900 kcal/kg.
Arthur said that while GLP can always seek for coal from other producers, Toba will prioritize on creating synergy through its planned coal mine acquisition.
He said that Toba has conducted due diligence on 10 coal mining firms in relation to its planned acquisition.
Editing by Reiner Simanjuntak