JAKARTA (TheInsiderStories) – Indonesian government decided 90 percent of profit state-owned coal miner, PT Bukit Asam Tbk (IDX: PTBA) in 2019 will distributes as dividend, said the CEO on Wednesday (06/10). The amount worth of Rp3.65 trillion (US$260.71 million) of last year’ profit Rp4.06 trillion.
Even so, said Arviyan Arifin, the company will not revise the 2020 sales and production targets of 29.9 million tons (MT) of coal and 30.3 MT of coal, respectively. To achieved the target, the company sought to diversify its coal market target such as Cambodia, Laos and Vietnam.
As for the end of the first quarter of 2020, the miner’ coal sales rose 2.1 percent from 6.6 MT of coal to 6.8 MT of coal by the production volume was down 2.8 percent. To support the planed, Bukit Asam still allocates capital expenditure Rp4 trillion in this year.
The biggest allocation of the funds was for the development of the South Sumatra Mine Mouth project in Tanjung Enim, South Sumatera, amounting to Rp250 billion. Overall, the plant is targeted to be completed in 2023 so that it can be operated commercially in 2024.
The publicly listed firm cooperated with other state firm, PT Kereta Api Indonesia to build a railroad that can transport coal from Tanjung Enim – Kertapati and Tanjung Enim – Tarahan. Regarding the firm’s expansion, Arifin said, the company team up with energy producer, PT Pertamina and United States investors, Air Products and Chemical to build coal gasification in Tanjung Enim.
He expects all of the processes is targeting to be completed in 2021. The building process will take time around three years and will be operating in 2024. The plant, he added will not only process coal to gas but also other profitable derivative products. The derivative products like methanol will have added value seven times higher than the main products as methanol is pivotal in biodiesel making.
The three parties have agreed to build a joint venture company with an investment of $3.5 billion. The joint venture company will process upstream and downstream products. In upstream processing, Air Production will be the majority shareholder while in downstream processing, Bukit Asam will be the majority shareholder.
Besides, the company is currently in the process of developing two steam power plant projects in the Muara Enim and East Halmahera areas with a 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, funded by the 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.
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