Govt to boost asphalt output

JAKARTA (JP): The government plans to increase asphalt output on Buton Island, South Sulawesi, to 1 million tons per year from 250,000 tons per year to meet growing demand on the domestic market for the commodity, Minister of Public Works Rachmadi Bambang Sumadhijo said on Monday.

Rachmadi said in the Southeast Sulawesi capital of Kendari that state-owned company PT Sarana Karya, which has the mining rights on the asphalt reserve in Buton, needs an investment of between US$90 million and $100 million to increase its asphalt output.

Publicly listed state tin mining company PT Timah announced last week it was seeking to acquire the cash-strapped Sarana Karya.

"If Timah is not able to provide the investment, (we) shall look for foreign investors (to acquire Sarana Karya)," Rachmadi was quoted by Antara as saying.

Besides Sarana Karya, Timah is mulling the purchase of 30 percent of the country's largest coal producer, PT Kaltim Prima Coal in East Kalimantan. It also is considering purchasing 60 percent of coal mining company PT Berau Coal in East Kalimantan and 50 percent of Gadjah Tunggal's gold mine in Mirah, Kalimantan. (jsk)