Bukit Asam signs deal with train company to boost coal transport
Wednesday, March 8 2000 - 04:00 AM WIB
The state owned coal-mining firm PT Tambang Batubara Bukit Asam has signed an Rp 425 billion joint investment deal with the state train company PT Kereta Api Indonesia (KAI) to help the latter boost the coal transport volume of the former from its home base in Tanjum Enim in South Sumatera to the Lampung area.
President of Bukit Asam R.A. Sunardi said on Tuesday during a hearing session with the parliament said that the coal volume transported from South Sumatera to Lampung was projected to increase to 12.5 million tons per year by 2002 from the current 8 million per tons per year.
Sunardi said that in 1999, Bukit Asam's total production reached 11.2 million tons of which 9.2 million tons were produced by the Tanjung Enim operation and the remainder by the Ombilin operation in West Sumatra.
He said that because of the limited capacity in transporting its coal production, some 1.2 million tons of coal had been treated as stock.
He added that if the coal transport had been upgraded, the coal stock could be exported particularly to Japan, Taiwan, and Southeast Asian countries.
Sunardi also said that Bukit Asam was planning a initial public offering of 20-49 percent share later this year. He added that this might include an overseas listing possibly on the London Stock Exchange. (*)