PTBA to acquire three coal concessions

IDX-listed coal mining firm PT Bukit Asam Tbk (PTBA) plans to acquire three new coal concessions including one in Australia as the current drop in coal prices provide attractive valuation.

Kontan quoted Thursday PTBA Corporate Secretary Joko Pramono as saying that the firm was currently in the process of conducting due diligence to acquire a 30 percent stake of Australia?s Ignite Energy Resources (IER) coal concession in Victoria State, which is estimated to have 16.4 billion tons of reserves.

?We have set a target to complete the IER due diligence in the second semester of this year,? Joko said.

The planned acquisition forms part of the company?s cooperation agreement in developing a technology to turn lower calorie coal into higher value products.

PTBA in May signed an MoU with IER to develop so-called Cat-HTR technology in Australia and Indonesia and to turn low calorie coal or lignite into synthetic crude oil and high quality coal or pulverized coal injection (PCI).

Elsewhere, Joko said that PTBA was also in the process of conducting due diligence on concessions in Sumatra and Kalimantan as part of the planned acquisition strategy. PTBA, which has 7.3 billion tons of coal reserves, about 6.3 billion tons located in Muara Enim Regency, Sout Sumatra, and the remainder in neighboring Lahat Regency, aims to become a world-class company through technology development and acquisition of assets having high CV coal reserves. (*)