PTBA finalizes acquisition of Kalimantan-based coal mine

State owned coal producer PT Tambang Bukit Asam (PTBA) is currently finalizing its plan to acquire a coal mine in Kalimantan to further expand the company?s coal production.

PTBA president director Sukrisno said in Jakarta on Friday that the acquisition of the coal mine had been prepared since last year as part of the company?s program to acquire several coal mines in Kalimantan.

?We hope the acquisition could be completed in the first half of this year so that we can move with other acquisition targets,? he added.

PTBA which is based in Tanjung Enim, South Sumatra has targeted to acquire several coal mines in Kalimantan to boost its coal production which was estimated to reach 13.02 million tonnes last year.

Sukrisno said that the company was still auditing its 2010 financial reports but he said net profits were estimated to reach Rp 2 trillion last year. The company earlier said that total revenues fell to Rp 5.9 trillion as of September from Rp 6.55 trillion in the same period, last year. The net profit also dropped to Rp 1.38 trillion in at the end of September from Rp 2.23 trillion in the same period, last year.

Sukrisno also said that PTBA was exploring the possibility of increasing its ownership in PT BukitAsam Transpacific Railway (BATR) to 30 percent. At present, PTBA has a 10 percent stake in the joint venture while its partners China Railway Engineering and Rajawali Corporation hold 10 percent and 80 percent, respectively.

He also said that the company had also decided to cancel its plan to cooperate with South African Coal, Oil arid Gas Corporation (Sasol) to build coal gasification due to the lack of coal supply.

?Gasification should be supported by coal reserves of at least two billion, while we only have 1.6 billion,? he said. (*)