TEMPO.CO, Jakarta - PT Tambang Batubara Bukit Asam (PTBA) is committed to acquire 24 percent of Ignite Resource Energy Ltd’s share. The acquisition process is expected to be completed in 2016.
Based on a release from NH Korindo Securities, the aquisition is currently in process and has reached a stage of study from pilot scale to commercial scale. What became a consideration for the acquisition is because the cost of medium-rank coal production which are significantly owned by PTBA is quite high, not to mention the expensive transport cost.
“That is why the alternative is to be torched at the mouth of the mine in the form of electric steam power plant mine-mouth development or manufactured in the form of synthetic oil done by Ignite,” NH Korindo Securities Research Head Reza Priyambada said in a statement on Wednesday, Aug 24.
Ignite Resource Energy Ltd is an Australian energy firm which is considered to have the advanced technology in increasing coal quality. Ignite uses Cat-HTR technology which can process coal into Synthetic Crude Oil that could be further broken down into diesel, aviation fuel and gasoline, as well as producing high-calorie coals.
In the acquisition process, Bukit Asam must prepare a funding of $180 million to build a commercial plant in Indonesia. Later, the fund will be used to build a commercial plant at a medium-scale.
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