Duta seeks coal, gold mining

PT Duta Graha Indah Tbk, builder of Indonesia’s stock exchange tower, plans to enter the coal and gold mining business to tap growing local demand for energy and on expectation the price of the precious metal will rise.

Duta Graha may also seek contracts for mining-related engineering, procurement and construction services. The company is looking for mining opportunities on Sumatera Island and on the Indonesian side of the Borneo Island.

Rising energy consumption and infrastructure spending is prompting Duta Graha to tap new revenue source in Indonesia, which plans to add 10,000 megawatts of coal-fired power capacity by 2010. The government increased its infrastructure budget 13 percent this year to stimulate the economy, which expanded 4.4 percent in the first quarter, the fastest in Southeast Asia.

Duta Graha will consider funding options as and when prospects arise. About 70 percent of the company’s revenue comes from government projects.

Source: The Jakarta Post, May 27, 2009