Coal supplier PT Indo Tambangraya Megah (ITM) Tbk (ITMG) is setting aside $300 million for mining acquisitions and capital expenditure this year. The company is currently studying about ten coal mines in the country.
“We are already in the process of due diligence to acquire some of these mines, most of them with small reserves of around 50 million metric ton (MT). But the value can’t be disclosed yet,” said director of ITM Yulius Gozali.
Aside from those few small mines, the firm is also looking at a large one in Sumatera. If successful, the mine would be integrated with ITM’s power plant project.
ITM’s integrated business involve coal mining operations, processing and logistics. The company owns the majority of shares in seven subsidiaries and operates six mining concessions in the island of Kalimantan, covering East, Central and South Kalimantan.
Those seven companies are PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Jorong Barutama Greston and PT Kitadin (Embalut), PT Bharinto Ekatama and PT Kitadin (Tandung Mayang), PT ITM Indonesia, and PT Tambang Raya Usaha Tama.
ITM also owns and operates Terminal Batubara Bontang (Bontang Coal Terminal/BoCT), three loading ports, as well as Bontang Electricity Generator.
Until March 2016, ITM recorded lower sales revenue by 23 per cent due to slumping average coal selling price. Its revenue fell to $331 million, compared with $428 million in the first quarter last year. Gross profit margin was recorded 21 per cent or slightly 2 per cent lower than it was in the same period last year. The company had net income of $23 million.