Research

SOE coal miner Tambang Batubara Bukit Asam (PTBA) is considering increasing stake in Bukit Asam Transpacific Railway (BATR). The company has an option to increase stake up to 30%. PTBA and China Railway each owns 10% while Rajawali Group 80% through Transpacific Railway Infrastructure.

BATR will construct 307km long of railway to transport up to 25m tons of coal per year from PTBA’s mine to a new port in Srengsem, Lampung in 2014. The company has received commitment from numbers of banks including Industrial and Commercial Bank of China Ltd. (ICBC), The Export-Import Bank of China (China Eximbank), China Development Bank (CDB), and Bank of China for a total of US$ 1,05 miliar.

In addition, the company is also plans to acquire up to 4 coal companies to boost production to 50m tons per year by 2014. For those, the company has put aside up to Rp1.5tr for the project. Source: Detik News and The Jakarta Post