PT Bukit Asam has acquired two Central Kalimantan-based companies in a move which will provide it with an additional 292 million tonnes of coal resources. Bukit Asam has taken over coal miner Tabalong Prima Resources (TPR) and coal transport company Mitra Hasrat Bersama (MHB) in a transaction worth US$36 million.

The payment will be made in three stages with the first $12.3 million of the total figure paid on May 28. The remaining payments will be made in the next six months in order for the company to wholly acquire the two firms.

The acquisition was made through the publicly-listed miner’s 51%-owned subsidiary, Internasional Prima Coal (IPC).

TPR operates a 3145 hectare mining concession in Tabalong, with 292 million tonnes of coal resources and 109 million tonnes of mineable coal reserves. The additional reserves are a major addition for IPC, which operates a 3283 hectare mining concession with 13.6 million tonnes of proven reserves in Samarinda, East Kalimantan.

MHB owns a coal jetty and conveyor system by the Barito River with a total area of 60 hectares. Its conveyor system has an hourly loading capacity of 1000 tonnes and unloading capacity of 500 tonnes.

TPR is integrated with MHB through their ownership of a 85.5-km hauling road that connects TPR’s concession with MHB’s port.

The transaction was made shortly after Bukit Asam took over almost the entire stake in Bukit Asam Banko (BAB), a joint venture it created with Rajawali Asia Resources, part of the Rajawali Group, in 2008. BAB will be responsible for managing mining operations in Banko Tengah, Muara Enim regency, South Sumatra.

Bukit Asam now controls a 99.99% stake in BAB, up from 65%, through a transaction that cost Bukit Asam Rp 842 million ($63,730).

Bukit Asam’s president director Milawarma said during a recent shareholders’ meeting that the company was upbeat about booking 33% growth to 23.9 million tonnes in coal sales volume in 2015.

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