Gresik to acquire US$117m coal mine, Indonesia

Gresik to acquire US$117m coal mine, Indonesia
Published: 05 September 2011

Indonesia’s largest cement maker PT Semen Gresik said it has set aside IDR1trn (US$117m) to acquire a coal mine.

The acquisition is aimed at reducing production cost, Dwi Soetjipto, the president of the state company said, adding coal for fuel accounts for 30 per cent of the company’s production cost.

Mr. Soetjipto said the company has paid high for coal procurement to fuel its kilns.

The acquisition is also part of the company’s plan to expand its production capacity from 20.2Mta at present to 23Mt next year.

The company hopes to put into operation new factories in Tuban, East Java and in Tonasa in South Sulawesi.

Mr. Soetjipto said the capacity will be expanded further to 30Mt in 2015 with two more factories to be built either in Java or Sumatra.