Indonesia: Coal miner ITM readies $300m for acquisitions, capex

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.

Also Read:

Indonesia: BHP Billiton sells 75% in IndoMet Coal to Adaro for $120m

BHP Billiton weighs exiting coal assets in Indonesia

Indonesia’s Salim Group buys Rio Tinto’s Australia coal mine for $224m

Indonesia: Power producer Cikarang Listrindo to raise $550m via bonds

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.