Bukit Asam to Finalize Ignite Resources Acquisition

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  • TEMPO.CO, Jakarta - PT Tambang Batubara Bukit Asam will finalize its plan to acquire 20 to 30 percent of Ignite Resources Energy Limited’s shares, Bukit Asam corporate secretary Joko Pramono said.

    “By the second semester of this year, [Bukit Asam’s] subsidiary company PT Bukit Energy Investama will acquire [the shares],” Joko said on the sidelines of Tarahan Port inauguration in Lampung last week.

    The company has allocated US$30 million to take over Ignite Resources’ shares from the company’s internal cash. In a conditional sale and purchase agreement (CSPA) signed by the two companies, it is stated that Bukit Asam must fulfill requirements to finalize the acquisition, including those related to the acquisition executor.

    In addition, there are other clauses related to the technology to convert low-calorie coal to crude oil and high-calorie coal and the catalytic hydrothermal rector technology, which can be leased to other coal companies in Indonesia.

    The state-owned company is also considering coal reserves owned by Ignite Resources in Victoria, Australia, that reached 16 billion tons to meet demands from Australia.

    Currently Bukit Asam owned a total of 7.2 million tons of coal in Indonesia. The acquisition will ensure the company’s additional coal resources.