PTBA eyeing BP and Banpu for its shares

State coal miner PT Batubara Bukit Asam (PTBA) has planned to offer its shares to Anglo-American energy giant BP Plc and Thai mining giant Banpu Plc through an initial public offering (IPO) which is planned for November, Koran Tempo daily reported on Thursday.

?Admittedly, we will also offer PTBA shares to other foreign investors. But the two companies (BP and Banpu) will be our main target,? PTBA corporate secretary Munandar was quoted as saying on Wednesday.

PTBA has decided to sell 15 percent of its shares through IPO on the Jakarta Stock Exchange in November.

BP Plc owns 50 percent of East Kalimantan-based coal miner PT Kaltim Prima Coal, while Banpu is the owner of PT Indominco Mandiri, a coal mining firm formerly owned by the Salim Group.

Munandar was still unclear about the portion of PTBA shares to be offered to BP and Banpu.

Another executive of PTBA said earlier the company expected IPO proceeds to reach more than Rp 500 billion (US$9,200). The fund would be used for building a coal-fired mine mouth power plant in South Sumatra, and increase the company?s production.

PTBA operates coalmines in South Sumatra and West Sumatra which turn out 10.2 million tons of coal in 2001. The company?s total production was targeted at 9.8 million tons this year. (*)