Singapore-based Sembawang Engineers and Constructors has signed an agreement to acquire a 50% stake in a thermal coal mining company in Central Kalimantan, Indonesia.

The mining firm holds a coal IUP license and the concession has currently estimated resources of 134 million metric tons and potential in situ reserves calculated at 57 million metric tons.

Sembawang president and CEO Richard Grosvenor said that with this investment, the company has added a new vertical to its business portfolio and it hopes to leverage the existing opportunities in the coal mining sector in Indonesia.

Sembawang is a subsidiary of Indian engineering and construction firm Punj Lloyd.