Indonesian Political, Business & Finance News

PTBA Prepares Ombilin and Mempawah Project for Expansion

| Source: ANTARA_ID Translated from Indonesian | Energy
PTBA Prepares Ombilin and Mempawah Project for Expansion
Image: ANTARA_ID

Jakarta (ANTARA) - PT Bukit Asam Tbk (PTBA) is preparing the development of the Ombilin coal mine in West Sumatra as well as the power plant project in Mempawah, West Kalimantan, as part of the company’s expansion and downstreaming strategy.

PTBA President Director Arsal Ismail stated that the Ombilin mine still has reserves of 102 million tonnes of coal, which have potential to be optimised.

“If with prices (of coal) like now, we should optimise that opportunity,” said Arsal in Jakarta on Monday.

He explained that of the total reserves, around 2 million tonnes are in open-pit mining, while 100 million tonnes are underground mining.

Previously, the government through the Investment Management Agency (BPI) Danantara encouraged the acceleration of the reactivation of the Ombilin mine.

If it operates again, the mine has the potential to absorb around 1,000 workers.

According to Arsal, the development of Ombilin has now received approval from the Ministry of Culture because the area is related to a cultural heritage site.

“We have received approval from the Minister of Culture, because the area is included in the UNESCO World Heritage site,” he said.

PTBA Operations and Production Director Ilham Yacob added that the current stage for Ombilin is the preparation of an analysis regarding environmental impact (AMDAL).

He said the company hopes the AMDAL can be completed in about six months, even if possible it can be accelerated.

“The hope is by the end of 2026 we can start mining in the Ombilin open pit,” said Ilham.

Besides the AMDAL, PTBA is also preparing feasibility studies and other necessary operational processes, including appointing experienced contractors for underground mining.

The development of Ombilin is part of the company’s efforts to optimise the remaining coal reserves, in line with the current improvement in commodity prices.

In addition to the mining project, PTBA is also preparing a power plant project to support the downstream development of bauxite processing into alumina and aluminium in Mempawah, West Kalimantan.

He said the project is an assignment from MIND ID to PTBA to support the energy needs of the aluminium smelter developed by Inalum.

PTBA Downstreaming and Product Diversification Director Turino Yulianto said that to date, the Mempawah power plant project is still in the process and negotiation stage with partners.

He mentioned that interest from investors comes from several parties, both from abroad and domestic.

According to him, the potential partners being negotiated come from China, South Korea, Japan, as well as national entrepreneurs.

He added that the company’s target is to start the physical construction of the power plant project in early 2027 so that it can run in parallel with the smelter construction.

“Our target is early 2027 to start physical construction,” he said.

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