PTBA fails to acquire BHP?s Maruway coal project

A consortium led by state-owned coal mining company PT Tambang Batubara Bukit Asam (PTBA) has yet to pass the prequalification tender to acquire part of BHP Billiton?s Maruway coking coal project in Central and East Kalimantan.

PTBA?s president director Sukrisno confirmed in Jakarta on Monday that the company had failed in the prequalification process. ?I have just been informed that PTBA was not included on the list of companies which passed the prequalification,? he said.

Sukrisno said that he did not know the bidders which had been short-listed to go ahead with the bidding process.

PTBA initially established a consortium with PT Rajawali Corporation, PT Aneka Tambang Tbk (Antam), and PT Timah Tbk to take over the entire stake of BHP Billition. But then companies said that they would reconsider the establishment of the consortium after the Australian company confirmed it would only sell a 25 percent of its stake.

Sukrisno said that the company would continue with its plan to take over six coal companies in Kalimantan despite its failure to acquire BHP Billiton project. The company had allocated up to Rp 1.5 trillion (1US$ = Rp 9,400) to finance the acquisition plan.

Reports said that a number of companies including PT Bumi Resources, Adaro Energy, PT Indika Energy, and PT Medco Mining had expressed interest in participating in the project.

The Coal Project comprises seven Coal Contracts of Work (CCOWs). Of these, BHP Billiton was developing the Haju mine and conducting the Lampunut feasibility study to investigate the development of an open cut coal mine.

The Haju mine was initially constructed to guide further development of the 100 per cent BHP Billiton owned large, metallurgical coal deposit in Central Kalimantan . (*)