PTBA to finally close down Bukit Kendi mine

IDX-listed coal miner PT Bukit Asam Tbk (PTBA) said it would soon finally close down its Bukit Kendi coal mine in South Sumatra as it is no longer efficient to operate, Kontan.co.id reported Tuesday.

?There are only little remaining reserves. We?ll close it down because if we continue, it would no longer be efficient and takes huge cost,? said PTBA President Director Milawarma, adding that the shut down would not affect the company?s performance due to the mine?s relatively small size.

PTBA through PT Batubara Bukit Kendi, set up in 1996 with 75 percent ownership, operates the Bukit Kendi mine, which now has remaining reserves of about 2 million tons, deemed to be no longer efficient to operate particularly given the current coal price downturn. Operation of the mine has actually been suspended since 2010 due to permitting problem. (*)