In view of attractive prospect of coal mining and in line with the long-term strategic aims of the Company, 2007 marked the year for the Company to re-enter coal mining operator business. This strategy was accelerated by the acquisition of PT Dasa Eka Jasatama (DEJ) through Pama.

A coal mining concession located in Rantau, South Kalimantan, current width of DEJ area totaled 12,500 hectares. Out of the area, only 10% had been explored, resulting in measured reserves of 38 million tons, and proven reserves of 18 million tons.

During its first year of operation, DEJ has been able to benefit the Company and booked revenue of Rp1.6 trillion, contributing 17% to Pama's revenue and representing 9% of the Company's consolidated revenue in 2007. The revenue was derived from sales of 3.6 million tons of 6,700 kcal premium quality coal.

In January 2008, the Company acquired the second coal concession, PT Tuah Turangga Agung (“TTA”) with effective ownership of 70%. TTA obtained coal concession right for 30 years, which will end in 2038. TTA is located at Kapuas, Central Kalimantan and covering the area of approximately 5,000 hectares with approximately 40 million tons estimated reserves and coal quality of 6,300 kcal.

TTA is expected to start the production in second semester 2009, currently still in the process of infrastructure development. The production is expected to increase to 3 million tons per year by 2011.

On 9 October 2008, the Company has carried out the closing transaction of the shares purchase and converted the mandatory convertible bond of PT Tuah Turangga Agung (TTA). Henceforth the Company shareholding of TTA is 100%.

Considering the strategic value and future prospect of coal, the Company intended to further expand its mining buiness by acquiring more concessions, focusing in medium high coal quality and production capacity of about 3 million tons per annum.