PTBA is waiting for China?s financial scheme to develop Ombilin
Thursday, February 13 2003 - 03:05 AM WIB
PTBA?s president director Ismet Harmaini said in Jakarta on Tuesday that the South Sumatra-based coal mining company?s special team had visited China to negotiate the possible involvement of the Chinese company in the development of the Ombilin coal mining.
"We are still waiting for a commercial proposal from the Chinese company to develop the Ombilin coal mine," he was quoted as saying. He said that the Chinese conducted the feasibility on the possibility of developing the under-ground mining activities in Ombilin in December last year.
According to Ismet, the Chinese company will offer three options in the development of the under-ground mining in Ombilin.
The first option will be in the form of build, operate and transfer (BOT) under which CNTIEC will be allowed operate the coal mine for certain period of time. In this option, the Chinese will provide all of the funds needed for the development of the project.
The second option will allow PTBA to receive soft loan in the form of export credit to develop the Ombilin mine, and the third option will allow PTBA to receive commercial loan to finance the project but the Chinese company wants to become the main operator of the mine if the latest option is chosen.
PTBA hopes that the development of the underground mining would pave the way to increase coal production in Ombilin to 1.3 million tons a year from about 500 tons at present. (*)