PTBA will continue to finish restructuring BATR

Management of PT Bukit Asam (PTBA IJ, BUY, TP: IDR12,400) intends to finish restructuring the mining concession of PT Bukit Asam Bangko (BAB). This restructuring process has been delaying the development of Bukit Asam Transpacific Railways (BATR) project. Since BAB is a joint venture between PTBA & Rajawali Group, management has stated that there is a possibility that Rajawali Group will divest its shares in BAB before PTBA will transfer its mining license to BAB. These restructuring must be done according to Law #4/2009 regarding mining businesses. BATR project investment value is worth USD1.8bn. On the other hand, throughout 1H14 sales volume grew to 8.83mn tonnes (+1.02% y-o-y) while blended ASP was booked at IDR726,766/tonne.