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Bukit Asam acquisitions difficult to be realized

JAKARTA: The plan of PT Tambang Batu Bara Bukit Asam Tbk (PTBA) to acquire a coal mine projects this year is considered difficult to be realized.President Director of Tambang Batubara Bukit Asam Sukrisno said the demand price for the acquisition increased

JAKARTA: The plan of PT Tambang Batu Bara Bukit Asam Tbk (PTBA) to acquire a coal mine projects this year is considered difficult to be realized.President Director of Tambang Batubara Bukit Asam Sukrisno said the demand price for the acquisition increased due to the increase of coal price."There has been a due diligence, but it seems the acquisition can not be realized. If the coal price goes high, the acquisition price will also increase. We will see, if it can not be realized then we will look for another mine," he said today.Meanwhile, the company is now awaiting for the completion of feasibility study of coal gasification development by the German company, PT Lurgi. It is expected that the findings of study can be completed by the end of this year or early next year.He also said if the results of the study suggested to conduct a strategic cooperation then it will take two to three years for completion.Sukrisno said that Lurgi will supply coal to 6 million tons per year and produce coal gasification about 800,000 tons per year. The offtaker of the project is PT Pertamina (Persero). "The composition have not yet revealed, but Lurgi want to be the majority in this cooperation," he said.(t03/wiw)

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