Mon, 08 Nov 2010


VIVAnews - South Africa-based company South Africa Coal, Oil and Gas Corporation (Sasol) is likely to cancel around US$10 billion of investment in Indonesia due to the lack of coal supply from PT Bukit Asam Tbk.

"Seemingly, it's hard for Sasol to put in investment because Bukit Asam can't afford to supply the needed coal," said Chief of the Capital Investment Coordinating Agency (BKPM) Gita Wirjawan today, Nov 4.

As reported, Bukit Asam is only capable of feeding Sasol with 500 million tonnes of coal despite Sasol's real demand of two billion tonnes.

The US$10 billion-project was initially intended to develop coal-to-liquid facility in Indonesia which will use lignite coal.

With regard to consortium as a choice, Bukit Asam Managing Director, Sukrisno, said "Sasol proposes several conditions."

One of the conditions is that coal supply must be of the same spot with the project. "This is quite difficult. None of mining concessions in Indonesia has as many reserves as being requested by the company," he said.

Sasol produces synthetic coal-based fuel in London, UK, with operation capacity of around 160 thousand barrels per day.