PTBA to boost coal production on W. Sumatra mine

State coal miner PT Tambang Batubara Bukit Asam (PTBA) has planned to boost coal production of its Ombilin mine in West Sumatra using part of the funds to be derived from its initial public offering scheduled for November, PTBA president director Ismet Harmaini said on Wednesday.

Ismet did not disclose the portion of PTBA?s IPO proceeds which would be used for further developing the Ombilin project.

Aside from West Sumatra, PTBA also has coal mining operations in South Sumatra, where 90 percent of the firm?s coal production comes from.

PTBA , one of Indonesia?s top coal producers, has planned to offer between 30 and 35 percent of its shares through IPO on the Jakarta Stock Exchange in November. The divestment plan aims to narrow the country?s state budget deficit, which is expected at 2.5 percent of gross domestic product this year. The government has also planned to sell other state companies this year for the same purpose.

The company?s annual production is projected to reach 9.8 million tons in 2002, down from last year?s 10.2 million tons.

A significant portion of PTBA?s production is shipped to Japan, Taiwan and Spain, under 5-year contracts. (leo)