Bukit Asam Tbk (PTBA) is reviewing the feasibility plan for the acquisition of Ignite Resource Energy Ltd, Australian coal company. The decline in global crude oil prices led to the Ignite project to convert low-calorie coal to high calorie and Coal liquefaction became less attractive.
According to Adib Ubaidilah, Corporate Secretary of PTBA, the company has temporarily suspended the cooperation with Ignite. “This project is still running and has not officially been stopped while paying attention to the fluctuating oil price,” said Adib in a written statement to IDX.
The company is planning to acquire 24 percent stake in Ignite since 2015. The acquisition is expected to be a solution for medium coal rank production and synthetic oil.
Ignite uses Cat-HTR technology that can process coal into synthetic oil which can be decomposed into diesel, aviation and gasoline as well as producing high-calorie coal. Synthetic oil is an alternative to crude oil when world oil prices are high. (*)