Toba Bara to acquire small coal mine

IDX-listed coal company PT Toba Bara Sejahtra Tbk (TOBA) is considering to acquire a small coal mine amid the gloomy coal industry.

There are 30 coal mines that are being considered by the company, but only one mine that will be acquired. Toba Bara will only take over coal mine with minimum 20 million tons of reserve.

The company's investor relation officer Iwan Sanyoto said the plan is to increase total coal reserve of the company. Toba Bara currently has total 147 million tons of coal reserve.

The company will use internal funding to acquire the coal mine. As of second half 2013, the company's cash and cash equivalent is US$53.28 million.

"We do not need external funding yet. Unless, there is a valuable concession which requires a huge investment," Iwan said as reported by Kontan. (*)