Bumi plans ways to commercialize S. Sumatra giant lignite mine

IDX-listed coal mining giant Bumi Resources plans to build mine-mouth power plant and coal treatment facilities at its newly acquired Pendopo Energi Batubara (PEB) coal mine in South Sumatra.

The company said in a presentation on Wednesday that has signed MoU with Japan?s firms Sumitomo Corp., and J Power to build 2x300-MW mine mouth power plants within the mine?s concession; MU with Mitsui Corp. to build coal gasification plant, MoU with Hong Kong Electric (HKE) to develop Upgraded Brown Coal (UBC) facility, in which HKE would act as offtaker and financier and MoU with various parties to develop coal liquefaction facility.

Bumi acquired PEB early this year for Rp.1.3 trillion (US$=Rp.11,00), which would be paid in staged installment within 2 years.

According to Bumi, PEB, which is a third generation CCoW holder, has JORC-complaint total resources of 1.1 billion tonnes which include reserves of 687 MT.

The mine has lignite coal reserves with CV of around 4,800 kcal adb, 60% Total Moisture (TM), 6.0% ash (AR) and 0.13% sulphur content (AR) .(alex)