Samindo Resources (MYOH) Ready to Acquire 2 Mines Site

PT Samindo Resources Tbk. (MYOH), a mining contractor, targets to acquire two coal mines this year.

Samindo Resources President Director Kim Jung Gyun said the company has 25 years experience in coal mining operations. To diversify revenue, MYOH will acquire 1-2 mines by 2018.

The acquired coal mine will be integrated with the company's plan to develop the Coal Fire Power Plant (PLTU). However, MYOH positions will not be a majority within the concession.

"Maybe our ownership in the new mine is only 20% - 30% only," he said.

Acquisition funding, Kim continued, will be different with the  2018 capital expenditure budget of US $ 13.8 million. The source of funding to increase the share ownership of the coal mine comes from internal cash or parent injections.

MYOH's major shareholder is Samtan Co.Ltd at 63.57%. The South Korean-based company raised about US $ 600 million from the sale of a 40% stake in PT Kideco Jaya Agung to PT Indika Energy Tbk. (INDY).

"We have a lot of funds after releasing Kideco, which can be used for the acquisition of new mines. [The acquisition fund] depends on what percentage of stocks, reserves, and companies are," he added.

MYOH Investor Relation Ahmad Zaki added for the acquisition of a coal mine, MYOH prepare up to US $ 100 million. Meanwhile, for the development of PLTU or Solar Power Plant (PLTS), the allocation of funds reached US $ 25 million.

The targeted coal mine has a coal reserve volume of around 20 million tons. Its annual production volume reaches 2 million - 3 million tons.

For power plant projects, the company plans to follow a number of tenders. In 2017, the company follows three tenders, namely PLTS in North Sumatra and Bangka, and PLTU Kaltim 6. However, MYOH has not passed the three project offerings.

"This year we will try the tender again, because to integrate with the results of our coal later," he said.