Indonesia`s Bukit Asam confirms will buy shipping company

Jakarta (ANTARA News) - State-run PT Tambang Batubara Bukit Asam, Indonesia's sixth-largest coal miner, said Tuesday that it is planning to acquire the government-owned shipping company PT Bahtera Adiguna, confirming a media report.

"We have asked Pricewaterhouse Coopers to conduct the due diligence. Later we will also need to appraise the company," Bukit Asam director Milawarma told Thomson Financial.

Milawarma was responding to a report by Investor Daily which said the acquisition may cost Bukit Asam around 100 billion rupiah. He said it was "too early" to comment on the purchase price.

"We hope that in January we will have a clear idea whether or not we will go ahead with the acquisition," he said.

Milawarma said by running its own shipping company, Bukit Asam will be able to secure a better price for its coal sold to domestic buyers since it will not have to subcontract the shipping to third parties.

Bukit Asam is primarily a domestic coal player. Its main buyer is state-owned power company PT Perusahaan Listrik Negara.

Milawarma said Bukit Asam was expecting to sell 10.8 million tons of coal this year of which about 9 million tons will come from its own mine. The rest will be purchased from third parties.