MARKET DEVELOPMENT
Bukit Asam Buys Palm Plantation for $72m for Its Coal Resources
Bukit Asam Buys Palm Plantation for $72m for Its Coal Resources
21/10/2014 (Jakarta Globe) - State-controlled Bukit Asam has purchased Jakarta-based plantation company Bumi Sawindo Permai for Rp 861.4 billion ($72 million), to bolster its coal reserves as the coal miner expands its power-generation business.
Bukit Asam wholly acquired Bumi Sawindo Permai through its subsidiary, Bukit Multi Investama, the company said in a statement to the Indonesia Stock Exchange on Tuesday.
The shares were bought from Mahkota Andalan Sawit, a Medan-based palm oil company, at 99.998 percent and from another company called Mily at 0.002 percent, it said in the statement.
Bumi Sawindo Permai owns 8,346 hectares of plantations in South Sumatra that are located within Bukit Asam’s mining concession area in Tanjung Enim.
Joko Pranomo, corporate secretary at Bukit Asam, said the plantation area holds 580 million metric tons of coal reserves, compared to the 1.99 billion tons owned by Bukit Asam in total.
“The presence of the plantation is a positive and strategic move in developing Bukit Asam’s business in a sustainable way, especially to fulfill the demand of coal for mine-mouth power generators in the construction phase, as well as for future mine-mouth power projects,” Joko said in the statement, referring to Bukit Asam’s coal-fired power generator that is adjacent to its mine in South Sumatra.
Bumi Sawindo Permai’s plantation area is also equipped with one palm oil processing plant that has the capacity to produce up to 45 tons of fresh fruit bunches per hour, and a 5-megawatt power generator that’s fueled by palm oil waste.
Bukit Asam has been aggressively expanding in power generation as it seeks to add more value to its business amid declining global coal price.
Bukit Asam has set aside around $1.5 billion to expand in the Southeast Asia region, seeking among others, to build steam power plants in Myanmar and Vietnam as well as export coal to those two countries.
Bukit Asam’s net income rose to Rp 1.16 trillion in the first six months this year, up 33 percent from the same period last year as it manages to cut operation costs. It has yet to report the third quarter result.
Shares of Bukit Asam fell 1.83 percent to 12,075 per share on the Indonesia Stock Exchange (IDX) on Tuesday.
Bukit Asam wholly acquired Bumi Sawindo Permai through its subsidiary, Bukit Multi Investama, the company said in a statement to the Indonesia Stock Exchange on Tuesday.
The shares were bought from Mahkota Andalan Sawit, a Medan-based palm oil company, at 99.998 percent and from another company called Mily at 0.002 percent, it said in the statement.
Bumi Sawindo Permai owns 8,346 hectares of plantations in South Sumatra that are located within Bukit Asam’s mining concession area in Tanjung Enim.
Joko Pranomo, corporate secretary at Bukit Asam, said the plantation area holds 580 million metric tons of coal reserves, compared to the 1.99 billion tons owned by Bukit Asam in total.
“The presence of the plantation is a positive and strategic move in developing Bukit Asam’s business in a sustainable way, especially to fulfill the demand of coal for mine-mouth power generators in the construction phase, as well as for future mine-mouth power projects,” Joko said in the statement, referring to Bukit Asam’s coal-fired power generator that is adjacent to its mine in South Sumatra.
Bumi Sawindo Permai’s plantation area is also equipped with one palm oil processing plant that has the capacity to produce up to 45 tons of fresh fruit bunches per hour, and a 5-megawatt power generator that’s fueled by palm oil waste.
Bukit Asam has been aggressively expanding in power generation as it seeks to add more value to its business amid declining global coal price.
Bukit Asam has set aside around $1.5 billion to expand in the Southeast Asia region, seeking among others, to build steam power plants in Myanmar and Vietnam as well as export coal to those two countries.
Bukit Asam’s net income rose to Rp 1.16 trillion in the first six months this year, up 33 percent from the same period last year as it manages to cut operation costs. It has yet to report the third quarter result.
Shares of Bukit Asam fell 1.83 percent to 12,075 per share on the Indonesia Stock Exchange (IDX) on Tuesday.