JAKARTA (TheInsiderStories) – Indonesia coal miner, PT Bukit Asam Tbk (IDX: PTBA) raised fresh funds Rp2.17 trillion (US$155 million) from the sale of 649.98 million treasury stocks during April 2 until Dec. 4, 2019. These shares are the result of buybacks conducted during May 2012 until Dec, 2015, said the company on Thursday (12/05).
Based on the official statement, the company had released treasury shares three times this year. On April 2, the miner released 63.17 million shares, then followed by the release of 490.72 million shares on May 8 and sold 96.09 million shares on Dec. 4.
The buyers of treasury stocks were PT BNI Sekuritas and PT Danareksa Sekuritas. They purchased the stocks with the average price of Rp3,347 a share.
“After the transaction, the company still had a remaining treasury stock of 330.29 million shares or 2.89 percent of the total issued and fully paid shares,” said the state-owned firm.
In this year, Bukit Asam allocated capital expenditure of Rp4 trillion for next year and part of the treasury stocks sale funds will allocate for the needs. This fund will be used to support coal production and sales of 30 million tons.
The miner planned to use investment funds for a number of projects. The miner will work on the coal gasification project, the development of coal transportation and the Mulut Tambang Sumsel 8 in Muara Enim project in South Sumatera.
Bukit Asam is currently 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, 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.
In addition, unit of MIND ID is also preparing a coal downstream project in Peranap, Riau and Tanjung Enim, South Sumatra. The company cooperates with energy holding, PT Pertamina, as the off taker dimethyl ether and air products as the owner of coal gasification technology for the downstream project.
As for the downstream project in Tanjung Enim, Bukit Asam engages Pertamina, PT Pupuk Indonesia and PT Chandra Asri Petrochemical Tbk (IDX: TPIA). To support coal transportation, the company developed a railroad coal transportation project with PT Kereta Api Indonesia. Through this development project, the company hopes to transport up to 60 million tons of coal per year by 2023.
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