PTBA doing feasibility studies on gasification and underground mine

State owned coal mining company PT Bukit Asam is doing feasibility studies to convert coal into gas and exploit its underground coal reserves in Ombilin, West Sumatra.

Company director AC Purba said on Thursday the firm was cooperating with Uzbek Coal to study the feasibility of converting its coal in Ombilin into gas. The feasibility study is expected to be finalized in February next year and should the gasification project be possible, PTBA will embark on the project and the gas will be supplied to the nearby power plant in Sigantang.

?Uzbek Coal has managed to carry out a similar project in their own country,? Purba explained.

PTBA, in cooperation with mining giant Glencore, is also carrying out the study on the possibility of extracting its coal reserves in Ombilin through the underground mining method.

PTBA estimates there are 20 million tons of mineable coal reserves in the area with the calorie content of more than 7,000. The ombilin mine is now in production with an annual output of 80,000 tons.

?Given the reserves? high calorie, we are optimistic the project will be feasible,? Purba said, adding the feasibility study was also expected to be finalized in February next year. (Alex)