Bhakti Investama acquires Sumatra, Kalimantan coal mines
Eyeing production of 15MT in 2012
Friday, May 7 2010 - 01:23 AM WIB
The coal concessions comprised of 1 producing concession, PT Muba Coal (PMC) and 7 exploration concessions. PMC's production will be increased to 3 million tonnes per year in 2011 after the construction of port and road infrastructure that is planned to be completed this year, the Company said.
Based on the existing data, the reserves of 2 concessions (PMC and one of the 7 exploration concessions) will reach more than 50 million tons. It is estimated that total potential resources of the 8 concessions will reach between 750 million to 1 billion tonnes, it said.
Currently, The Company and the partner has executed a preliminary exploration program and is expected that some concessions would be able to produce about 15 million tons per year in 2012.
In addition to that, the Company has also signed an MOU to operate one of the producing concessions in East Kalimantan.
Bhakti has also signed an MOU to acquire a stake as a majority in the port and road development, which will be started soon and will increase production in the related concessions.
It is estimated that the producing concession has more than 30 million tons of reserves.
With the new port and road infra structure, production is expected to reach 3 million tons per year in 2011.
?Therefore, Bhakti expects to have a production of 6 million tons per year in 2012 from the above 2 concessions, the one in South Sumatra and East Kalimantan. BHIT will continue to increase production and pursue to acquire other potential concessions so that the total production will reach 15 million tons per year in 2012,? the Company said.
The Company did not disclose acquisition price. (alex)