PTBA conducting due diligence for acquisitions

By Hiski Darmayana

PT Bukit Asam Tbk (PTBA) is conducting due diligence in a number of coal concessions as an initial step for acquisitions.

?Some of the concessions meet our criteria for acquisition. But we could not yet identify them. We?re in a process of conducting due diligence before deciding to acquire the concessions,? PTBA President Director Milawarma told Petromindo.com on the sidelines of Investor Summit 2012 in Jakarta on Wednesday.

He also noted that his company had no time schedule for the acquisitions. ?The acquisitions will be implemented just like a surprise,? he added.

But he said that PTBA had decided three criteria for acquisitions. First, the concessions should have a high calorivic value (CV), or around 7,000 kcal/kg.

?We?ll prioritize coal with high CV or around 7,000. But it doesn?t mean that we?ll ignore those with low CV. If it is near to port, we?ll consider to acquire it. So, it will depend on the value of the concessions,? he said.

The second criteria, he said, is that the concessions should not be overlapping with other concessions or other business concessions, including forest,? he said.

The third criteria is concerned with production capacity. ?The concessions? production capacity should be over one million tons per year for a duration of between 15 and 20 years.

Editing by Benget Besalicto Tnb.