Bukit Asam to Acquire Australian Tech Company
20 May 2014 14:12 WIB
TEMPO.CO, Jakarta – Indonesian coal miner PT Bukit Asam (Persero) Tbk, plans to acquire 15 to 30 percent stake in Ignite Energy Resource Ltd., an Australian mining technology company. Bukit Asam president director Milawarma said the plan is in line with the company's targets to have the technology to transform low-calorie coals into crude oil and high-grade coal.
Ignite Energy is a company based in Victoria, Australia, which has the technology to modify low-grade coal into synthetic crude oil and pulverized coal injection (PCI). Synthetic crude oil can be further processed into gasoline and kerosene.
According to Milawarma, the company is currently completing the due diligence phase related to the planned acquisition; the investment value and cooperation scheme have not been determined. He expects the final decision to be made in September. "Our current target is not to be the majority (shareholder), which is 15 to 30 percent," he said.
Milawarma said in order to adopt the technology the company needs some US$500 million, which will be sourced from its internal treasury.
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