PTBA plans tie up with Polish investor to develop West Sumatra mine

The South Sumatra-based state owned coal mining company PT Batubara Bukit Asam (PTBA) plans to cooperate with a mining investor from Poland to jointly develop the company’s mining concession Ombilin II in Sawahlunto, West Sumatra, Bisnis Indonesia reported on Friday.

PTBA’s president Ismet Harmaini said in Padang, the capital of West Sumatra province, on Wednesday that the company’s senior executives had twice met the Poland investor to negotiate the plan.

“The Polish investor will inspect the Ombilin II mining area in June,” he was quoted as saying by the daily. He added that PT BA offered the Polish investor to mine coal through an underground mining system under a working contract agreement.

Under the proposed contract, PTBA would buy all the coal to be produced from the underground mine, Ismet said.

PTBA earlier offered the Ombilin II mine to Chinese investor but the cooperation plan was cancelled because the Chinese investors refused PTBA’s proposal to buy the coal to be produced from the mining area. (*)