PTBA to build coal upgrading, gasification facilities

By Romel S. Gurky

IDX-listed coal giant PT Bukit Asam Tbk (PTBA) has been in talks with potential strategic partners since 2013 to help the company realize its plans to develop coal upgrading and gasification facilities to take advantage of its huge low-rank coal reserves.

The company in its 2013 annual report did not disclose the names of the strategic partners, which it said have the expertise and technology in the coal upgrading and gasification areas.

PTBA said on Tuesday that the talks hopefully would be followed up with feasibility studies and the formation of joint venture companies. It added that EPC work for the planned coal upgrading facility is expected in 2015, in the hope that by 2017 a commercial-scale facility will already be up and running. It will have a capacity of 1 million tons of coal per year.

Meanwhile, the EPC for the planned coal gasification facility is expected in 2016, in the hope that the gasification and ammonia plant to be completed in 2018. PTBA is also teaming up with state-owned fertilizer firm PT Pursri in the project as the latter firm will absorb the output for raw material.

Editing by Reiner Simanjuntak