PTBA, Rajawali name independent appraiser

IDX-listed State owned coal mining company PT Bukit Asam Tbk (PTBA) and its partner Rajawali Group have named an independent appraiser to reevaluate the value of their coal mining project, Kontan daily reported on Friday.

PTBA?s president director Milawarma said in Jakarta on Thursday that the independent appraiser was expected to begin their assessment in July this year. ?Hopefully, it could be concluded next year so that we can begin the mining project,? he said.

PTBA and Rajawali have agreed to cooperate in the operation of coal mine and the development of a coal railway. To run the coal mine, PTBA and Rajawali, through its subsidiary Rajawali Asia Resources (RAR) have established joint venture PT Bukit Asam Bangko (BAB). PTBA owns a 65 percent stake in the joint venture while Rajawali owns the other 35 percent.

For the development of the railway, PTBA and Rajawali have also set up another joint venture called Bukit Asam Transpacific Railways. In this joint venture RAR owns 90 percent stake and PTBA holds 10 percent.

The reassessment of the value of the mining assets would be needed to determine the amount of capital that has to be injected by RAR in the joint venture. According to the asset valuation carried in 2008, the coal mine, with estimated total reserves of about 400 million tons, is worth US$1.21 per ton. Based on this assumption, Rajawali should inject about US$169.4 million in capital. (*)