PTBA Signs Activated Carbon HoA in Spirit to Push for Downstream Industries

PT Bukit Asam (PTBA) has once again proved its commitment to developing downstream industries and increasing the added value of coal as the company is set to produce activated carbon from coal. 

On Tuesday, December 22, 2020, PTBA signed a heads of agreement (HoA) with Activated Carbon Technologies PTY Ltd. (ACT), an activated carbon producer and supplier that is based in Australia.

In activated carbon production, coal is processed and activated to create a material with multitude of pores useful to adsorb various substances.

Activated carbon can be used to purify water, gases, and air, as well as utilized as filter in the food industry, color remover in the sugar and MSG industries, and neutralizer for drug waste in the pharmaceutical industry to avoid them from harming the environment.

The agreement between PTBA and ACT is about the utilization of activated carbon to be produced by PTBA. In the HoA, ACT serves as the prospective offtaker of the activated carbon produced and processed by PTBA in Tanjung Enim, South Sumatra. The product’s quality and other commercial terms will later be discussed by relevant parties and stipulated in a more detailed sales and purchase agreement.

PTBA plans to build a plant at the Bukit Asam Coal-Based Industrial Estate (BACBIE) in Tanjung Enim to annually produce 12,000 tons of activated carbon by processing 60,000 tons of coal per year.

PTBA Business Development Director Fuad Z. Fachroeddin said the preparation for the plant’s Front-End Engineering Design (FEED) would begin in 2021.

“This is a milestone for PTBA with the signing of the HoA with Activated Carbon Technologies PTY Ltd., which will be the offtaker of 12,000 tons of activated carbon per year. Hopefully in 2023, the first shipment of activated carbon from Tanjung Enim to the port in Australia can be realized.”

This partnership is a proof of transformation of PTBA, which keeps pushing for increasing the added value of coal.

ACT CEO and Founder Peter Cullum said he was delighted with the agreement. “We see there is a very good opportunity and most likely a greater success through this partnership. Apart from that, we also see there has been a growing demand for activated carbon, which we can optimize to penetrate wider markets in the world.”

Established in 2003 in Perth, Australia, ACT, the offtaker of PTBA’s activated carbon, is globally known as a reputable activated carbon company and supplier. ACT has a capacity to produce more than 40,000 tons of activated carbon per year with multiple global markets, including Australia, New Zealand, Europe, Canada, and the United States.