PTBA says acquiring desirable coal mines ?not easy?

Petromindo|Lucky

IDX-listed coal giant PT Bukit Asam Tbk (PTBA) has yet to be able to realize its long-held plan to acquire coal mines as part of expansion program, saying that getting desirable mines is not easy.

?This is not easy, there are many variables that must be looked into,? said PTBA President Director Arviyan Arifin on Wednesday. He said that the company is still at the stage of exploring a number of acquisition targets, but has yet to start due diligence process.

Arviyan said that the company is looking for coal mines with large reserves preferably located in Kalimantan. He said that while Sumatra holds huge coal potential, logistics wise it is quite challenging.

He added that the mines must be brownfield mines, or already in operation. ?We don?t want greenfield mines because the risk is huge. We want mines with large reserves, not small ones,? he said.

Arviyan said that the company was looking for mines having coal with specific calorific value of 4,200 kcal/kg because many power plants operated by state-owned electricity firm PT PLN requires such coal type. PLN is the largest coal consumer in the country.

PTBA has been planning to acquire new coal mines since last year in a bid to expand coal reserves amid the country?s massive development of new coal-fired power plants to increase electricity supply. The company is also planning to build new coal-fired power plants as part of diversification strategy. (*)