PTBA TO ACQUIRE TWO MINING COMPANIES' SHARES THIS YEAR

Jakarta, Feb 18 (ANTARA) - State coal mining company PT Tambang Batubara Bukit Asam (PTBA) has expressed optimism it can acquire the shares of two coal mining companies in East Kalimantan this year.

"Hopefully, the acquisition can be completed before the end of this year. It is just a matter of negotiations. We do not have problems with funding," PTBA President Director Sukrisno said here on Wednesday.

The decision to acquire the two mining companies' shares was based on the results of a due dilligence test in which they bested three to five other companies PTBA intended to take over, he said.

But he stopped short of revealing the name of the two companies for confidential reason.

Based on the results of an evaluation made by PTBA's team sent to the location, one of the two mining companies had a coal deposit of more than 100 million tons and the other less than 100 million tons, he said.

In 2008 PTBA also acquired a 51 percent stake in PT International Prima Coal at US$17.85 million.

PTBA posted a net profit of Rp1.7 trillion-Rp1.8 trillion last year compared to Rp760 billion a year earlier.

The 2008 profit was fueled by a surge in sales volume and improving coal prices.

Coal sales rose to 12.8 million tons in 2008 from 10.12 million tons in 2007.