TINS Sells Coal Mining Business Unit

Jakarta - TAMBANG. PT Timah (Persero), Tbk (idx: TINS) sells its 90% shares of PT Tanjung Alam Jaya, a coal mining company. The US$ 30 million purchase was made by PT Duta Perwira Nusantara.

TINS and its subsidiary, PT Timah Investasi Mineral, were the owner of Tanjung Alam Jaya with equal share proportion. Sukrisno, President Director of TINS, confirmed that two business transactions were made in accordance.

"TINS has signed a conditional agreement with Duta Perwira Nusantara, to sell 9,375 shares or 50% ownership of Tanjung Alam Jaya. Subsequently, Timah Investasi Mineral also signed similar deal with Duta Perwira Nusantara, relinquishing 7,500 shares or 40% ownership of Tanjung Alam Jaya," Sukrisno said, Tuesday (2/12).

He added that the US$ 30 million transaction value was accounted 7,23% of TINS equity as of December 31, 2013.

PT Tanjung Alam Jaya is a Coal Contract of Work (PKP2B in its Indonesian abbreviation) holder, with a recommendation as Listed Exporter (ET in its Indonesian abbreviation). The coal mining concession is located in Tapin, South Kalimantan Province. Tanjung Alam Jaya produces up to 1,5 million coal per year, with the calorific value range of 6,500 - 7,000.