Adaro develops infrastructure facilities at IndoMet coal project
Tuesday, August 29 2017 - 02:53 AM WIB
Petromindo|Dasir
IDX-listed coal giant PT Adaro Energy Tbk said that it is gradually developing infrastructure facilities at its coking coal project in Kalimantan as the company seeks to ramp up production in the future to meet growing demand for metallurgical coal used in steel production.
Adaro Director David Tendian said recently that the company is allocating around US$50 million per year to finance the development of logistic facilities at the IndoMet coking coal project. ?Every year, it would probably be around $50 million,? he said, but did not provide further details.
Adaro has become the full owner of the IndoMet coking coal project following acquisition of 75 percent shares last year from BHP Billiton.
The IndoMet coking coal project comprises of several concessions in Central and East Kalimantan run by several firms including PT Maruwai Coal, PT Juloi Coal, PT Kalteng Coal, PT Sumber Barito Coal, PT Lahai Coal, PT Ratah Coal, and PT Pari Coal.
The IndoMet project started production last year, but limited to soft coking coal. Production this year is targeted to reach 1 million tons. In June, Adaro President Director Garibaldi Thohir was quoted as saying that this year?s output has been contracted to India?s Tata Steel.
Editing by Reiner Simanjuntak