PT ABM Investama, (ABMM), an integrated Indonesian coal miner, expects to conclude the acquisition of a mid-size coal miner by the end of the second quarter this year, as part of the company’s moves to boost its coal production, Katadata reported quoting Adrian Erlangga, finance director of the company as saying on Monday.
The Jakarta-based company is now conducting a due diligence on the possible acquisition target. Even so, Erlangga declined to disclose the name of the company and the value of the acquisition. However, he said, the mine was already in production.
“Coal is still needed in the long run and it really depends on how we manage it,” Erlangga was quoted as saying by the paper. Coal will continue to remain one of the main export commodities by Indonesia and thus will generate more foreign exchange earnings, he added.
The company aims to produce 12 MnT of coal in CY19, nearly double of its previous year record of 6 MnT of coal.
The company has set aside as much as USD 50 Million as capital expenditure this year. That amount will likely be revised in the coming months, depending on the operation activities. But the funds for capital spending will be used mainly for maintenance of the company’s equipments.
The company sell 75% of its coal to China with the remainder to India, Vietnam and the Philippine, the paper reported.
The company has coal mining concession areas in Aceh in Sumatra Island through PT PT Mifa Bersaudara and in Kalimantan Island through PT Tunas Inti Abadi.
The resource-rich Kalimantan Island is home for many Indonesian miners.
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