Bumi Plc says planned projects on schedule

By Ruli Setiawan

London-listed Bumi Plc said in its second quarterly report that all approved projects in PT Berau and PT Bumi Resources are on schedule despite the dwindling of coal prices in recent months.

It said that the projects in its ownership of Berau Coal Energy were underway, including plans to construct a 42 kilometer overland conveyor and related power plant at Binungan, at an expected cost of $300 million.

The conveyor, one of the longest in the coal industry, will be constructed over two phases. The expansion of Lati's coal handling facilities and second barge-loading conveyor is expected to be completed by 2013 and will increase capacity by 5 million tons, from 13 to 18 million tons, at a projected cost of $75 million.

It said that the $35 million Sambarata stockpiling facility and new coal crusher are expected to be completed in 2013.

?The $65 million Binungan crushing plant, stockpile and conveyor line is scheduled to be completed in 2014,? the company said.

Meanwhile expansion operation at Bumi Resources was also in good progress with the second overland conveyor at KPC's Sangatta expansion successfully installed and commissioned in the H12012 and should increase capacity by 32 million tons per annum, at a cost of $135 million.

The full facility, including expanded stockpile, is scheduled for completion in Q3 2012.

The $100 million Melawan overland conveyor and crusher are also expected to be completed in Q4 2012, the company said, adding that a 3x18MW power station is under construction at KPC, and is expected to be commissioned by the end of 2013.

At Arutmin, the $50 million Asam-Asam overland conveyor and crushing plant were 85 percent completed and are expected to be commissioned in the third quarter of 2012. The $45 million West Mulia conveyor and crusher are 80 percent complete with commissioning`scheduled in Q3 2012.

Editing by Adianto P. Simamora