Baturona, BLT sign offshore coal terminal deal

Shipping firm PT Buana Listya Tama (BLT), a unit of Indonesia-listed shipping firm PT Berlian Laju Tanker (BLT) has signed memorandum of understanding (MoU) with South Sumatra coal miner PT Baturona Adimulya and Baturona?s affiliats to procure floating offshore coal terminal and storage under 20 years contract.

Under the MoU, signed on Dec. 23, 2010, BLT shall convert two or more of its oil vessel into floating offshore coal terminal and storage. The conversion is expected to be completed in this year, BLT said in its prospectus statement on Friday.

BLT said that it would take around 4 months to convert one vessel into floating offshore coal terminal and storage. The estimated cost is around US$4 million per one converted vessel.

Baturona is a third generation CCoW holder. The mine is located in Musi Banyuasin regency. Baturona started coal production in May 2009 with a small production volume. Baturona produces coal with CV of 5,200kcal/kg (ADB) with TM varies from 30-50%.

Baturona is a coal unit of Alas Watu Utama (AWU) Group. (denny)