BAB to complete coal reserves revaluation in September
Wednesday, August 28 2013 - 01:53 AM WIB
Coal mining company PT Bukit Asam Banko (BAB) aims to complete the revaluation of coal reserves at its BAB concession in Tanjung Enim, South Sumatra, in September of this year. BAB is 65 percent owned by IDX-listed coal mining giant PT Bukit Asam (PTBA), and 35 percent owned by Rajawali Asia Resources, a company controlled by tycoon Peter Sondakh?s Rajawali Group.
?The revaluation is performed by a third party outside PTBA and Rajawali. Our expectation is that the BAB reserves after the revaluation will be 500 million tons, in accordance with the feasibility study,? President Director of PT Bukit Asam Transpacific Railways (BATR) Rudiantara told Petromindo.com Tuesday.
BATR is a joint venture between PTBA (10%) and Rajawali Asia Resources (90%), set up to develop a 285-km single-track coal railway linking the Tanjun Enim coal mine site in South Sumatra and the coal terminal in Lampung province.
The result of the revaluation will be used to obtain funds from Chinese lenders including China Development Bank to finance the construction of the coal railway.
?Part of the BAB coal reserves will be exported to China as part of the agreement with the Chinese lenders,? said Rudi, adding that the coal railway is projected to start commercial operation in 2017 with a transport capacity of 25 million tons per year.
Editing by Reiner Simanjuntak