Bukit Asam says Ombilion coal mine is not part of assets to be privatized

The management of state coal mining company PT Bukit Asam assured on Thursday that they would not include the Ombilion coal mine in Sawahlunto, West Sumatra in the assets to be privatized by the company this year, Bisnis Indonesia reported.

Bukit Asam's president RA Sunardi said the company would not include the coal mine in its privatization program because it was too old and facing many problems, including the rampant illegal mining activities.

He said Bukit Asam was considering several options for the future development of the coal mine, including plans to stop production there, offer it to a national private company or to West Sumatra provincial administration.

He said the Sawahlunto coal mine has a huge coal deposit of 106 million tons but the coal must be developed through underground mining system which requires a lot of investment.

Bukit Asam has planned to go public on the Jakarta Stock Exchange in the first half of the year, but several leaders of West Sumatra threatened to block the listing plan if the company intended to include the Sawahlunto coal mine in its listing program.

Kontan weekly quoted analysts as saying that the public would warmly welcome Bukit Asam's listing plan as the company with assets worth US$675 million was considered an efficient company. (*)