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Bukit Asam explores new downstream coal partnerships
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A loader truck stockpiles coal at the Kertapati coal terminal belonging to state-owned company PT Bukit Asam (PTBA) in Palembang, South Sumatra. PTBA is exploring agreements with Chinese firms for downstream coal projects, including coal gasification. (Antara/Nova Wahyudi)
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tate-owned coal miner PT Bukit Asam (PTBA) has said it is exploring opportunities with several Chinese companies to continue downstream coal projects in Muara Enim, South Sumatra, including coal gasification into dimethyl ether (DME).
“We’re currently exploring things with some Chinese firms, and besides that, we’re not only going to focus on DME but also other derivatives [such as] ethanol and methanol. We’re also conducting studies [for that],” PTBA president director Arsal Ismail said on Friday, as quoted by cnbcindonesia.com.
The talks come after United States company Air Products and Chemicals Inc. withdrew from the project, which had been promoted by President Joko “Jokowi” Widodo.
Arsal said that despite Air Products' withdrawal, PTBA, the subsidiary of mining holding company MIND ID, remained committed to supporting the downstream program planned by the government for the production of DME.
Separately, Energy and Mineral Resources Minister Arifin Tasrif said Air Products had decided to discontinue its participation in the coal downstreaming project for various reasons
One of the reasons cited was better business opportunities in the US.
"They [Air Products] felt that business was more attractive in America, [so] they went there," Arifin said in December 2023.
