The formation of state owned holding especially for mining sector is considered as the right time to form it. In this condition, the consolidation is the right strategy to improve the profitability performance and enlarge the business scale, and also could dominate the provided reserves.
Previously, the mining companies had shown doing the same step. Batubara Bukit Asam Tbk (PTBA) had acquired Australian coal mining, Ignite Energy Resources Ltd. This was the second acquisition in 2015.
This strategy is applied by the world scale companies. Lanna Resources PCI, mining company from Thaland is trying to acquire at least one coal mining in Indonesia. Likewise, Aus Asia Minerals or Coal Fe Resources are also looking for one mining in South Borneo.
If the company has large asset, then the consolidation strategy is indeed the right strategy for mining companies to maintain their performances in the future.
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