Atlas Resources to acquire three new mines

The Jakarta Post | Business | Thu, March 14 2013, 12:47 PM

Coal miner PT Atlas Resources (ARII) will acquire three new mining sites in Kalimantan as part of its expansion plan, the company revealed in Jakarta on Wednesday. The publicly listed firm is currently in talks with the mines’ owners and will soon partner with two other companies to further develop its business, according to Atlas corporate secretary Eddy Salimah.

“We will soon finalize the deal to acquire the three mines, which are located near Kutai, East Kalimantan. Some of the mines have begun producing,” he said, declining to reveal the total transaction value.

Atlas plans to produce 2 million tons of coal this year, a more than 50 percent increase from 2012. To reach the target, Eddy said, the company would increase the production capacity of its existing mines, especially at its Muba mine in South Sumatra. Besides in Muba, it also owns mines in Berau and West Kutai, East Kalimantan province; and Ogan Komering Hulu in South Sumatra province.

The company has budgeted about US$25 million for this year’s capital expenditure, which will mostly be used for infrastructure development in Muba. “For now, capital expenditure funds are being generated from internal cash. We do not have any plan to hold a rights issue or sell debt papers yet,” Eddy said.

http://www.thejakartapost.com/news/2013/03/14/atlas-resources-acquire-three-new-mines.html-0

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