PTBA hopes to conclude restructuring of PT BAB soon

IDX-listed coal miner PT Bukit Asam Tbk (PTBA) hopes to be able to conclude the restructuring process of PT Bukit Asam Bangko (BAB), which is a key precondition to start the construction of a long-delayed coal railway project in South Sumatra.

?We hope the restructuring of BAB could be concluded in the third quarter of this year, or in the fourth quarter at the latest? said PTBA Corporate Secretary Joko Pramono as quoted by Kontan on Friday.

BAB is a joint venture company between PTBA (65%) and Rajawali Group (35%), which manages a coal concession in Bangko, South Sumatra. PTBA originally owns the coal concession, but the company transferred the concession to BAB as part of a deal with the Rajawali Group to develop a coal railway that would transport coal from PTBA?s concessions including in Bangko to the coal port.

The coal railway project is to be developed by a company called PT Bukit Asam Transpacific Railways (BATR), which is a joint venture between PTBA, Rajawali, and China Railway Group.

But existing regulation stipulates that the Bangko concession must be operated by the original holder of the IUP mining permit, which is PTBA not BAB, thus the necessity to restructure BAB. (*)