Bukit Asam Eyes Rp 5t for E. Kalimantan Coal Miners
Coal miner Tambang Batubara Bukit Asam has set aside Rp 5 trillion ($545 million) this year to finance the acquisition of coal miners in East Kalimantan, an executive said.
The state-controlled company is conducting due diligence on the acquisition plans now, president director Milawarma said in Jakarta on Thursday.
The acquisition was intended to boost the company’s coal production, he said on the sidelines of the investor day held by the Indonesia Stock Exchange.
The company aims to acquire miners that can produce mid- to high-calorie coal, Milawarma said.
Kalimantan is home to coal miners including Adaro Energy and Bumi Resources. “Acquiring coal miners is one of the alternatives to boost our production,” he said, without providing details.
Milawarma said last week that coal production was expected to rise 27 percent to 17.4 million tons this year. Bukit Asam’s coal sales are forecast to hit 18.66 million tons this year, from 13.5 million tons last year.
Increasing production and sales are expected to push Bukit Asam’s revenue to Rp 14 trillion, Milawarma said last week. The company posted revenue of Rp 10.6 trillion last year.
Milawarma said Bukit Asam would assign its International Prima Coal unit to carry out the Kalimantan acquisition. Bukit Asam bought a 51 percent stake in IPC in 2008 for $17.8 million.
The company also plans to pay a total dividend of Rp 1.85 trillion to its shareholders from last year’s profit. The company posted a total net income of Rp 3.09 trillion in 2011. Shares in Bukit Asam rose 0.3 percent to Rp 18,350 in Friday trading, bringing gains this year to 6 percent.
Jakarta Globe & Investor Daily