PTBA to boost coal output next year<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
State coal mining firm PT Tambang Batubara Bukit Asam (PTBA)
\nexpects a significant boost in its coal output starting in 2005,
\npending the successful acquisition of several coal mining firms.<\/p>\n
PTBA president Ismet Harmaini said that while the firm was
\neyeing a number of potential companies to be acquired, it was
\ncurrently finalizing the acquisition of a coal mining firm in
\nKalimantan.<\/p>\n
That deal alone, scheduled for completion early in 2005, could
\nboost PTBA's coal output by about 20 percent, he said in his
\npresentation paper at an energy conference on Tuesday.<\/p>\n
\"It would immediately provide an additional production output
\nof about 20 percent,\" Ismet said, without mentioning the targeted
\ncompany.<\/p>\n
The publicly listed firm expects to produce 9.9 million tons
\nof coal this year, lower than the 10.03 million tons produced
\nlast year due in part to problems in the railway transportation
\nsystem.<\/p>\n
The coal producer, the fifth largest in the country, has said
\nthat the mergers and acquisitions (M&A) scheme was aimed at
\nboosting output and meeting rising demand, both from the domestic
\nmarket or exports.<\/p>\n
At present, the company exports more than 1 million tons of
\ncoal per year to Taiwan, Malaysia and Spain.<\/p>\n
But, the bulk of its production is for the domestic market. It
\nsupplies about 6.1 million of tons of coal per year to coal-fired
\nSuralaya power plant, and about 1.2 million to coal-fired Bukit
\nAsam power plant.<\/p>\n
Domestic coal demand for power generation alone would likely
\nreach about 35 million tons in 2010, as compared to about 22
\nmillion tons this year, according to the paper.<\/p>\n
Elsewhere, the company also said that it was pushing ahead
\nwith its plans to improve the railway facilities in Sumatra,
\nscheduled to start next year, to boost existing capacity.<\/p>\n
PTBA is faced with problems in delivering about 7 million tons
\nof coal per year from Tanjung Enim mine in South Sumatra to
\nTarahan port, and about 1.5 million tons to Kertapati port. When
\ncompleted in 2007, the $200 million program would enable the firm
\nto jack up the railway capacity to 12.5 million tons per year and
\n2.5 million tons.<\/p>\n
The projects will be conducted jointly with State Railway
\nCompany PT KAI.<\/p>\n
Another major project that the company is pushing ahead with
\nis a plan to build a 2 x 100 megawatt coal-fired power plant with
\nPT Indonesia Power in Banjarsari, South Sumatra, and another
\ncoal-fired power plant with the same company in Pranap, Riau,
\nwhich will have a capacity of 2 x 250 megawatts.<\/p>\n
At a combined cost of $709.9 million, Banjarsari and Pranap
\npower plants are scheduled for commissioning in 2008 and 2009,
\nrespectively.<\/p>\n
PTBA has coal resources of about 7.3 billion tons -- or about
\n17 percent of the country's total coal deposits -- with total
\nmineable reserves of 1.5 billion tons.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ptba-to-boost-coal-output-next-year-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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