PTBA eyes 30% stakes at Adani's S. Sumatra coal railway project

State-owned coal miner PT Bukit Asam (Persero) Tbk (PTBA) plans to acquire 30% stakes at a railway project in South Sumatra which will be developed by a unit of Indian firm Adani Enterprise, a company spokesman said.

?We have been advised to acquire 30% stake in the project. We will buy the stakes from Adani Global," said Achmad Sudarto, PTBA's Corporate Secretary, on Tuesday.

PT Adani Global will develop a 270-km railway connecting Tanjung Enim to Tanjung Api-Api in South Sumatra.

The company controls 97.5 percent stake in the project while South Sumatra provincial government owns the rest.

PTBA will need to spend US$ 162 million to buy 30% stake in the project. It is still reviewing the plan.

Construction of the railway which will cost US$1,8 billion is expected to start in 2012. It is expected to be completed by 2014.

Aside from acquiring stakes in the Adani's coal railway project, PTBA plans to increase ownership in Bukit Asam Transpacific Railway (BATR).

?We are still reviewing the plan. But we could acquire 20 percent stakes as we already have 10% stakes,? said Achmad.

The BATR project which will develop a 307-km railway from Tanjung Enim in South Sumatra to Lampung, which is worth US$ 1,8 billion.

PTBA will have to pay US$ 162 million to BATR for the stakes. (*)