Rajawali ready to reduce ownership in BATR

Rajawali Group is ready to sell part of its stake in PT Bukit Asam Transpasific Railway (BATR) to the publicly listed coal producer PT Bukit Asam (PTBA), one of its partners in the joint venture.

Daryoto Setyawan, Managing Director of the Rajawali group as quoted by Kontan said that the business group had no problem to sell part of its ownership in BATR to PTBA if the coal miner wanted to increase its stake in the joint venture. ?We have not made any decision because PTBA has not informed us about the plan,? he added.

At present, Rajawali Group holds an 80 percent stake in BATR through its subsidiary PT Transpacific Railway Infrastructure, while PTBA and Chinese company, the China Railway Group Limited own 10 percent, respectively.

The joint venture was set up to develop a 300-kilometer railroad to transport coal from PTBA?s mining area in Tanjung Enim in South Sumatra to the Tarahan coal terminal in Lampung. BATR plans to spend up to US$1.3 billion for the project.

PTBA?s Corporate Secretary Hannato said recently that the coal mining company planned to increase its stake in BATR to 30 percent from 10 percent at present.(*)