PTBA interested in former coal concession of Asmin Koalindo

State-controlled coal giant PT Bukit Asam Tbk (PTBA) is interested to acquire the former coal concession of PT Asmin Koalindo Tuhup in Central Kalimantan Province, Kontan reported on Thursday.

The paper quoted PTBA President Director Arviyan Arifin as saying that the company will first evaluate the concession and if it is deemed economically feasible, the company will participate in the upcoming auction of the concession.

Arviyan said that as a state-owned company, PTBA should be given priority in acquiring the concession as part of strategy to expand its mining assets.

The Ministry of Energy and Mineral has terminated the coal contract of work (PKP2B) of PT Asmin Koalindo Tuhup (AKT), a subsidiary of IDX-listed PT Borneo Lumbung Energy & Metal Tbk, after the latter put up the 21.630-ha concession as collateral for loan obtained from Standard Chartered Bank in 2016 without government approval. This is considered as a breach of regulation.

Director General of Mineral and Coal at the ministry, Bambang Gatot Ariyono said that the PKP2B concession will be converted into mining business license area (or WIUP), which will be later offered to investors via auction. He said that the auction hopefully can be made in 2019.

Ministry Spokesman Agung Pribadi said that according to existing ministerial regulation, state-owned and local government-owned companies get priority in acquiring the WIUP concession.

He, however, said that the auction schedule has yet to be decided, as the government must first determine the amount of the compensation for information data (or KDI) to be paid by auction participants. (*)