UPDATE: Antam: May Buy Stake In BHP's Indonesian Coal Assets
October 08 2009 - 2:55AM
Dow Jones News
State-owned nickel and gold mining company PT Aneka Tambang
(ANTM.JK) is considering acquiring a stake in BHP Billiton Ltd.'s
(BHP) Indonesian coal assets as part of its plan to buy a coal
project as early as this year, an executive at Antam, as the
company is known, said Thursday.
A move by Antam for BHP's coal assets could face stiff
competition, as a consortium led by state-owned coal producer PT
Tambang Batubara Bukit Asam (PTBA.JK) earlier this week said it has
submitted a bid for the assets, while local coal companies PT Medco
Energi International (MEDC.JK), PT Adaro Energy (ADRO.JK) and PT
Bumi Resources (BUMI.JK) have also expressed interest in the
assets.
Antam is considering buying into coal projects BHP Billiton has
indicated it wants to sell, or partnering with the Australian miner
to develop them, Djaja Tambunan, Antam's finance director, told Dow
Jones Newswires. He didn't indicate how large a stake Antam might
seek.
BHP Billiton has said it is considering selling all or part of
the Maruwai metallurgical coal project, which consists of seven
contract areas in Central and East Kalimantan. The company earlier
this year dropped a plan to spend about $100 million developing the
Haju trial mine at Maruwai.
BHP Billiton had planned to eventually produce 2 million metric
tons of coal a year from Haju and 3 million to 5 million tons a
year at the larger Lampunut deposit in Maruwai, and to build
transportation facilities in the area.
A spokesperson at BHP Billiton in Australia declined to comment
directly on Antam's comment, saying only that the company
"continues to review (its) commercial options" with regard to
Maruwai, including selling all or part of the project.
Tambunan said Antam is also looking at other coal assets in
Kalimantan and Sulawesi provinces, and hopes to clinch a deal this
year as the company expands its coal-fired power generating
capacity. He didn't elaborate on how many assets Antam plans to
buy.
-By Linda Silaen, Dow Jones Newswires; 62 21 3983 1277;
Reuben.Carder@dowjones.com