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Thursday, 20 August 09
INDONESIA'S BUKIT ASAM SET FOR MINE ACQUISITIONS


* Allocates $150 million for coal mine acquisitions
* Expects one deal to be completed by the end of 2009


Reuters world's largest international multimedia news agency reported that, Indonesian state coal miner PT Tambang Batubara Bukit Asam has set aside $150 million to buy coal mines and expects to complete one mine acquisition by the end of 2009, President Director Sukrisno said on Thursday.

The acquisitions are part of the firm's plan to increase its coal production to 50 million tonnes a year within five to six years.

"We are in the due dilligence process for two mines, but hopefully this year we will settle the deal for one mine," said Sukrisno.

Data on the mine's coal reserves was not yet available because the mine, located in East Kalimantan, was new and had not started production, he said.

Bukit Asam expected its coal output to be 12 million tonnes this year, up from 11 million tonnes in 2008, helped by an increased use of trains to transport coal.

The firm had previously said it planned to increase train capacity to carry coal to 11.6 million tonnes this year, from 10.3 million tonnes by adding more trains.

Bukit Asam, Indonesia's third-largest coal miner by market value, had also said it would form a joint venture with state train operator PT Kereta Api Indonesia to upgrade existing rail links from its coal mines to a port on the southern tip of Sumatra.

South Sumatra, where Bukit Asam's coal mines are located, has 47 billion tonnes of coal reserves, or half of Indonesia's total of 93.4 billion tonnes, data from the energy and mines ministry shows.

But poor transportation in the province has been an obstacle to increase coal output, which averages just 12 million tonnes a year.
Source: Reuters



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