Govt to boost asphalt output

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)