Timah, Bukit Asam Expand to Myanmar
29 November 2013 13:42 WIB
TEMPO.CO, Jakarta - PT Timah Tbk (TINS) expands its business to Myanmar. PT Timah President Director Sukrisno said after obtaining 10,000-acre land exploration permit, the company is processing the second permit to obtain the right to 180,000-acre land in Myanmar. "(It is) for about 18 blocks," Sukrisno said in Jakarta yesterday.
PT Timah is waiting for green light from the local authority. He hopes the permit will be finished in December to perform the exploration in six months which will be followed by the stannary mining exploitation.
The state-owned enterprise is expanding to Myanmar by establishing joint venture with Myanmar's state-owned enterprise. Initial investment value is US$188 million for three years. "Their percentage of shares is 5-10 percent," Sukrisno said.
Other than expanding overseas, the company also diversifies its business by acquiring coal mining in South Sumatra and South Kalimantan.
Another mining company, PT Bukit Asam Tbk, aimed to realize expansion to Myanmar and Vietnam in 2017. Bukit Asam President Director Milawarma said the company will supply coals and build power plants by involving local companies. Fund needed to expand to both countries is estimated to reach US$320 million.
Milawarma said the company will budget its capital expenditure for Rp2.5-3 trillion for business development.
FAIZ NASHRILLAH | ANANDA PUTRI