Gov?t mulls to spin off Ombilin mine from PTBA
Tuesday, February 19 2002 - 05:57 AM WIB
?We are still waiting for the decision from Minister of State owned Enterprises Laksamana Sukardi on the matter,? said Purnomo on a sideline of a seminar.
PTBA is scheduled to be privatized either through initial public offering or private placement this year.
PT BA operates two major coal mining sites; one operated under the name of Tanjung Enim mining unit located in South Sumatera and the other one called Ombilin mining unit located in West Sumatera.
A company source said the spin off was necessary as production cost at Ombilin mine was high and the inclusion of Ombilin mine in PTBA could reduce the company?s attractiveness.
The source said beside high production cost at Ombilin, government also feared that PT BA's planned privatization might receive a wide opposition from the West Sumatran people, who threatened to do any things if the mining site was included in the privatization program.
PTBA, which produces some 10 million tons of coal annually, has 4.9 billion tons proved or probable reserve. (alex/godang)