Bumi sets up two subsidiaries to develop CBM

PT Bumi Resources Tbk, the country's largest coal producer, has established two subsidiaries PT Arutmin CBM and PT Kaltim Prima CBM to develop the country's coal bed methane (CBM) resources.

In a notice sent to the Indonesian Stock Exchange Tuesday, the company said that the two companies which were established with a paid-up capital of Rp 100 million each, would begin developing CBM after receiving approval from related governmental agencies.

Ari S. Hudaya has been appointed as President Director of PT Arutmin CBM, which is 99.99 percent owned by Bumi and 0.01 percent by PT Sitrade Coal, with Omar Luthfi Anwar as Chief Commissioner.

Ari has also been named as President Director of PT Kaltim Prima CBM with Omar Lufti Anwar also as Chief Commissioner. Bumi also owns 99.99 percent stake in the company with the other 0.01 percent held by PT Sitrade Coal.

Last year, Queensland coal seam gas (CSG) company WestSide Corporation Ltd signed a heads of agreement with PT Bumi Resources Tbk to establish a joint venture to develop coal seam gas (CSG).

The joint venture will evaluate and develop CSG prospects in the concession of Bumi?s South Kalimantan coal unit PT Arutmin, WestSide said in statement.

In May 2007, WestSide also signed a joint venture agreement to develop a similar project in Bumi?s subsidiary Kaltim Prima Coal (KPC) in East Kalimantan .

WestSide is currently working with KPC and U.S.-based CSG consultant Advanced Resources International in preparing a Project Definition Study to assess the CSG potential of selected areas of KPC's 91,000 hectare concession. (denny)