PT Bukit Asam Tbk is committed to carrying out the company's operational activities by continuing to boost coal production and sales. Coal reserves are recorded of 3.33 billion tons and resources of 8.17 billion tons and will guarantee the coal downstream business diversification.
As a form of corporate information disclosure, PTBA always updates coal reserves information through Company's Annual Report on the corporate website www.ptba.co.id and on the Indonesia Stock Exchange website.
In its efforts to increase the added value of coal and to support the President of the Republic of Indonesia’s downstream program, Bukit Asam in cooperation with Air Products – a US company engaged in gasification, have launched a downstream plant in Tanjung Asam's Coal Based Special Economic Zone (BACBSEZ) in March 2019. The total investment for the gasification development is US $ 3.2 billion, of which Air Products acts as an investor in the Upstream and Downstream businesses.
The gasification technology used in this plant will convert young coal into syngas and then processed into Dimethyl Ether (DME), Methanol and Mono Ethylene Glycol (MEG). The coal downstream project is planned to produce 1.4 million tons of DME, 300 thousand tons of Methanol and 250 thousand tons of MEG. This DME can also be used as LPG raw material, and estimated to reduce national LPG gas imports to around US $1 billion per year. Currently, the feasibility study has been completed and now we enter the FEED and EPC stages. The plant is expected to be operational by the end of 2023.
"This downstream project is in accordance with our corporate tagline ‘Beyond Coal’, and is shown by Bukit Asam transformation in giving added value to coal by processing coal it into end products such as DME, Methanol and MEG," said Arviyan Arifin.
Besides downstream project, Bukit Asam also runs a power plant development project, namely the South Sumatra Mine Mouth 8 PLTU and the East Feni Halmahera PLTU. Located in Muara Enim, South Sumatra, PLTU Sumsel 8 has a capacity of 2x620 MW and is managed by PT Huadian Bukit Asam Power (HBAP), as consortium between Bukit Asam and China Huadian Hongkong Company Ltd.
Signed by PLN, Bukit Asam and HBAP on October 19, 2017, the PLTU project is now in the construction phase. The construction phase has begun since June 2018 and is estimated to take 42 months for Unit I and 45 months for Unit II. Commercial Operation Date (COD) is targeted in 2021 for Unit I and 2022 for Unit II with a total coal demand of 5.4 million tons per year.
Meanwhile, PLTU Feni Halmahera Timur that was established as a form of synergy within BUMN Mining Industry Holding between Bukit Asam and Antam, has a capacity of 2x45 MW. Until now, the feasibility study for the project has been completed and will continue with Joint Venture Company plan. It is estimated that 330 thousand tons of coal supply per year will be needed for PLTU East Feni Halmahera’s operations.