Trada to allocate $15m for new coal mining business

By Thomas Sembiring

Petromindo|Thomas

IDX-listed PT Trada Alam Minera Tbk, formerly known as PT Trada Maritime Tbk, plans to allocate around US$15 million in capital expenditure next year for its new coal mining business.

Trada Director Ismail Mahruf said on Tuesday that the funds will be used to finance the development of mining infrastructure facilities such as a 60-km hauling road and for jetty maintenance at coal firm PT Gunung Bara Utama, which operates coal concessions in Kutai Barat, East Kalimantan Province.

Trada announced in October its decision to switch its main business from shipping to coal mining. The company plans to acquire 99.9 percent shares in PT Semeru Infra Energi (SIE) and PT Black Diamond Energi (BDE), which own coal mining firm PT Gunung Bara Utama (GBU), which operates a 5,350 ha coal concession in East Kalimantan. The mine has reserves of 64.85 million tons, and resources of 264.04 million tons, with calorific value of 5,200 Kcal ? 5,400 Kcal/kg ARB.

Trada will also acquire PT Lautan Rizki Abadi (LRA), the majority owner of PT SMR Utama (SMRU). By acquiring LRA, Trada will become an indirect owner of mining contractor PT Ricona Abadi, a subsidiary of SMRU.

Editing by Reiner Simanjuntak