PTBA cancels talks with CNTIEC on Ombilin coal project

State coalminer PT Batubara Bukit Asam (PTBA) has cancelled negotiations with Chinese investor China National Technology Import Export Corporation (CNTIEC) on Ombilin underground coal mining project in South Sumatra, Bisnis Indonesia daily reported Tuesday.

PTBA took the move after CNTIEC refused its proposal that the Chinese company invest its capital in the Ombilin project and carry out mining activities, while PTBA will just buy coal from it, PTBA president director Ismet Harmaini was quoted as saying Monday.

“CNTIEC was only willing to provide us with loans and wanted us to buy equipment from it,” Ismet added.

The Chinese firm had been expected to finance the Ombilin project which would cost an estimated US$62 million.

PTBA is seeking new alternatives to develop the Ombilin mining site, he said. He did not elaborate, however.

Ismet said further that his company had set a target to increase its coal output by 10 percent to 11 million tons this year. PTBA was also determined to raise its coal exports this year, he said.

Currently, 73-80 percent of PTBA’s coal output goes to the domestic market. (*)