Bumi Resources (BUMI), Indonesia's largest coal mining company, is reportedly seeking strategic partners from China for its coal upgrading project. This information was disclosed by BUMI's Independent Director cum Corporate Secretary, Dileep Srivastava.
In his statement, Dileep revealed that BUMI aims to secure funding this year to advance to the next phase, which is construction. "This year, we target to achieve financial closing to proceed to the next stage of construction," explained Dileep.
He did not specify the amount of funding required for the coal upgrading project or the financing structure between the company and potential Chinese partners.
Previously, President Director of PT Bumi Resources Tbk (BUMI), Adika Nuraga Bakrie, mentioned that the coal upgrading project, undertaken by BUMI's subsidiaries PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia, involves coal gasification converting into ammonia.
Initially, the two coal subsidiaries of the Bakrie Group planned to develop coal upgrading products into methanol. However, this plan was postponed due to various factors, including market considerations.
Dileep emphasized that the economic viability of the coal upgrading project is highly sensitive to product selling prices. Additionally, several other factors, including government regulations such as coal royalty rates of 0%, special coal price permits, tax holidays, and other incentives, also influence the project.
Nevertheless, he stated that the BUMI Group will adhere to applicable regulations. "BUMI subsidiaries always strive to carry out coal upgrading in accordance with the regulations in Indonesia," concluded Dileep.
By exploring potential partnerships with Chinese investors and navigating regulatory compliance, Bumi Resources aims to advance its coal upgrading project and contribute to the development of Indonesia's coal industry.