PTBA cancels cooperation plan with Chinese investor

South Sumatra-based coal mining operator PT Tambang Batubara Bukit Asam (PTBA) has cancelled its plan to cooperate with China National Technology Import Export Corporation (CNTIEC) in developing the company’s Ombilin coal mining site in West Sumatra, Bisnis Indonesia reported on Monday.

PTBA’s president director Ismet Hamaini said in Jakarta on Saturday that the cooperation plan with CNTIEC had been cancelled because the Chinese company refused the cooperation scheme offered by PTBA.

CNTIEC’s proposal to base the cooperation scheme on engineering, procurement and construction (EPC) did not meet PT BA’s expectation, he said.

He said that PT BA would continue to offer the Ombilin mining site to other investors either those from Indonesia or from other countries. “If not, we will develop the Ombilin coal mine with our own resources," he said.

According to him, the initial investment for the development of the Ombilin coal mine would reach at least US$62 million. He said that the amount would not include mining contract cost which reaches about US$15 per ton. (*)