PTBA stops Ombilin underground mining activities

By Tri Subhki R

IDX-listed state-owned mining and energy company PT Bukit Asam Tbk (PTBA) temporarily stops the underground mining activities at Ombilin concession, Sawahlunto, West Sumatra due to uneconomical consideration. The company is seeking third party entity to jointly operate the underground mine.

?We temporarily suspend the operation in underground mine at Ombilin as the operational costs are much higher than the revenue,? PTBA?s Corporate Secretary Joko Pramono said to Petromindo. He added that PTBA is in ongoing process to create partnership with the third party that covers both technical and financial aspects without elaborating the time schedule when Ombilin mine will be re-operated.

PTBA previously operated the underground mining by conducting mechanical mining but the company will use manual mining when the 2,950 hectares coal mine is re-operated.

Editing by Johannes Simbolon