PT Astrindo Nusantara Infrastruktur Tbk (BIPI) has officially acquired PTT Mining Ltd (PTTML), a Hong Kong-based company which owns three coal mining concessions in Kalimantan, Indonesia, namely Jembayan, Sebuku and Penajam. "We are very grateful after obtaining approval from the holders, so that the acquisition of PTTML was completed today and PTTML officially became part of the Astrindo Group," said Main Director of Astrindo (BIPI) Ray Anthony Gerungan, Thursday (16/2/2023).
According to him, currently, the Jembayan concession has 71 million tons of reserves and 493 million tons of coal resources, based on the JORC2020 report. This mine produces coal with an average caloric quality of 5,500 Kcal/kg (GAR) and produces an annual average of 6 million tonnes. In addition, he stated, Jembayan was projected to continue stable production of 6 million tonnes this year and would become Astrindo's main revenue contributor. It is believed that this acquisition will strengthen Astrindo's financial performance, especially with the still high reference coal price (HBA), currently at around US$277 per ton in February 2023 compared to US$188.38 as of February 2022.
"I am grateful for the hard work and dedication of our team to complete this transaction and appreciation for the PTT team for their commitment with Astrindo until completion," added Ray. According to him, this acquisition is a big step for the company as well as being the main driver for achieving the goal of decarbonization by building a coal downstream that can reduce carbon emissions in this sector.
“The direct impact of the acquisition of PTTML on Astrindo's financial prospects has been tremendous. Financial performance in 2023 will increase sharply along with the completion of the PTTML acquisition process," said Astrindo Director (BIPI) Michael Wong. Furthermore, he said, Astrindo's revenue for the third quarter of 2022 reached US$ 6.28 million. Meanwhile, PTTML's revenue in that period reached US$ 244.64 million. Thus, on a pro forma basis, Astrindo's total revenue by including PTTML has increased sixfold. "We hope that PTTML's performance in 2023 can be stable, even increase, considering that the average coal price is still higher than in 2022. We believe that with a better balance and cash flow, Astrindo's fundamental prospects have changed to become a more attractive and profitable company. financially strong,” concluded Michael.
Source: https://investor.id/market-and-corporate/322071/astrindo-nusantara-bipi-resmi-akuisisi-ptt-mining
