JAKARTA (TheInsiderStories) - State miner, PT Bukit Asam Tbk (IDX: PTBA) is planning a number of new developments in 2021 to improve the operational performance and capacity, said the management. To support the business expansion program, the issuer prepared an investment Rp2 trillion (US$142.86 million) in this year.
One project that will start the construction in this year is the gasification of coal into methyl ether (DME) collaborating with American-based Air Products and Chemical Inc., and energy producer, PT Pertamina. The project, which is located in Tanjung Enim, South Sumatra, will process 1.4 million tons of DME and targeting the commercial operation date in the second quarter of 2024.
In addition, Bukit Asam will also plans to increase its coal transportation facilities at the Tanjung Enim - Kertapati and Tanjung Enim - Tarahan railways, which are targeted to operate commercially in the third quarter of 2021. Both are expecting to transports 32 million tones (MT) of coal per year.
The company also preparing a coal production project into activated carbon. This project is the result of collaboration with activated carbon producers and suppliers from Australia, Activated Carbon Technologies Pty. Ltd., which will also acted as an off-taker. The two companies have signed an agreement at the end of December 2020.
Bukit Asam will process 60,000 tones of coal and produce 12,000 tones of activated carbon per year from the new factory. The miner plans to build the factory in the Tanjung Enim Industrial Estate in this year and its hope that in 2023, the realization of the first shipment of activated carbon from Tanjung Enim to Australia can be realized.
Beside, the issuer is in the process of developing two steam power plant projects in the Muara Enim and East Halmahera areas with total investment of $2.03 billion. The project is being built by PT Huadian Bukit Asam Power, a consortium between Bukit Asam and China Huadian Hongkong Company Ltd. This project requires an investment of $1.68billion and funded by Exim Bank of China.
In addition, Bukit Asam is also collaborating with PT Antam Tbk (IDX: ANTM) to build the Feni power plant in East Halmahera, North Maluku. The power plant project which has a 3×60 megawatts (MW) power plant capacity and a 3×17 MW diesel power plant. This project requires an investment of $350 million, which can be funded by banks.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
