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Semen Baturaja acquires coal mine to cut 50% of raw material cost

28 August 2018 08:08 AM  Company: PT. Semen Baturaja (Persero) Tbk [SMBR]
Rp. 1,110  -25 (-2.2%)
JAKARTA - PT Semen Baturaja (Persero) Tbk (SMBR) allocated the internal funds of Rp 300 billion to acquire coal mines this year. It is expected that the existence of new assets can reduce raw material costs by 50% starting in 2019.   President Director of Semen Baturaja Rahmad Pribadi said, the company is in the process of acquiring a coal mine. The targeted mining location is close to the operation of SMBR in South Sumatra.   "The progress of our coal mining acquisition is still in due diligence. The acquisition process is targeted to be completed this year," he said at the IDX Building on Monday (08/27/2018).   To acquire coal mines, the company has set aside Rp 300 billion in funds. The source of funds came from internal cash.   Rahmad said, mining acquisition can reduce the cost of raw materials for black stone, while avoiding global price volatility. It is expected that in 2019 the cost of coal is reduced by 50%.   According to him, the company will not add large numbers of workers in line with the presence of coal mines. The reason is, workers in limestone mines can also be empowered in the operation of black stone mining.   "There are three main raw materials for cement, namely lime, clay, and coal. Fortunately we have locations that tend to be close, so that operations can be integrated and efficient," he said. (AM/LM)
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PT. Semen Baturaja (Persero) Tbk [SMBR]   Rp. 1,110   -25 (-2.2%)