PTBA’s IPP to operate in 4Q14

PT Tambang Batubara Bukit Asam (PTBA IJ, BUY) is ready to operate its 2×110 MW Independent Power Producer (IPP) by 4Q14. Management stated that the IPP will be able to absorb 1.4m tonnes of coal. Another IPP that will be commercialized next is the 2×620 MW Banko Tengah IPP, it is expected to operate in 2017. Meanwhile, the acquisition process of Ignite Energy Resources Ltd is still in due diligence process and estimated to complete in 2015.